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 (Universitas Pamulang)
I Gede Marendra (Universitas Pamulang)
Nia Januari (Universitas Pamulang)
Rizkqi Aji Gunawan (Universitas Pamulang)
Tauhid Djasa Haditya (Universitas Pamulang)

Asian Journal of Applied Business and Management (AJABM)
Vol. 2 No. 3 (2023): August 2023

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.