Tauhid Djasa Haditya
Universitas Pamulang

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The Effect of Liquidity and Solvency on Company Profitability Levels (Empirical Study of Pulp and Paper Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange in 2017-2021) Atep Sopandi; I Gede Marendra; Nia Januari; Rizkqi Aji Gunawan; Tauhid Djasa Haditya
Asian Journal of Applied Business and Management Vol. 2 No. 3 (2023): August 2023
Publisher : PT FORMOSA CENDEKIA GLOBAL

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55927/ajabm.v2i3.4477

Abstract

This study aims to determine the effect of solvency and liquidity on profitability in pulp and paper sub-sector companies. The sample in this study was the financial statements of eight manufacturing companies in the pulp and paper sub-sector for the period 2017–2021, obtained from the Indonesia Stock Exchange (IDX). This research also uses panel data (pooled data), which is a combination of time series data (time series) and cross-sectional data (individual). The results processed in this study on the liquidity variable have a significant effect on the profitability variable, with a value of 0.0231 <0.05. The solvency variable has no significant effect on the profitability variable, with a value of 0.1173 > 0.05. While simultaneously the liquidity and solvent variables have a significant effect on the profitability variable with a result value of 0.016126 <0.05.