Ilomata International Journal of Management
Vol 1 No 2 (2020): April 2020

Analysis of the Effect of Operating Leverage and Financial Leverage on Companies Profitability Listed on Indonesia Stock Exchange

Asraf Asraf (Unknown)
Mia Muchia Desda (Management study Program, Pasaman High School of Economic Sciences)



Article Info

Publish Date
31 Mar 2020

Abstract

The purpose of this study was to explain the influence of the Degree of Operating Leverage (DOL) and Degree of Financial Leverage (DFL) on company profitability. The population in this study was consumer goods companies listed on the Indonesia Stock Exchange in 2017-2018, with 33 sample companies selected using purposive sampling. Method research was causality research and the data used is quantitative data. The company published a complete financial report from 2017 to 2018 which could be accessed through the Indonesian Stock Exchange Website and related company websites. The data were analyzed using the SPSS 21 application. The result shows that individual testing of DOL with profitability and DFL with profitability and joint testing of DOL and DFL with profitability found that DOL and DCL did not have a significant effect on the changes in company profitability (ROE and ROA) .

Copyrights © 2020






Journal Info

Abbrev

ijjm

Publisher

Subject

Social Sciences

Description

The analysis of this study aims to determine whether recruitment positive and significant effect on the performance of employees in the Manufacturing Company. To know able to moderate recruitment monitoring the performance of employees in the Manufacturing Company. Data analysis technique used is ...