International Journal of Management Progress
Vol. 5 No. 2 (2023): International Journal of Management Progress

Analysis Profitability of Capital Structure in Companies Manufacturing

Saprudin (Universitas Gorontalo)
Arman (Universitas Airlangga)



Article Info

Publish Date
29 Aug 2023

Abstract

The aim of this research is to determine and analyze the influence of capital structure (DER, DAR and CR) on profitability (ROE) in metal and similar subsector manufacturing companies listed on the Indonesia Stock Exchange. The data in this research is secondary data in the form of annual financial reports of metal companies listed on the Indonesia Stock Exchange (BEI) for the 2018-2020 period obtained through the official BEI website. This research uses descriptive analysis methods and multiple linear regression analysis. The results of this research are: 1) Debt to Equity Ratio (DER) has a significant effect on Return on Equity (ROE) in a negative direction; 2) Debt to Asset Ratio (DAR) has no effect on Return on Equity (ROE); 3) Current Ratio (CR) influences Return on Equity (ROE) in a negative direction; 4) Debt to Equity Ratio (DER), Debt to Asset Ratio (DAR), and Current Ratio (CR) simultaneously have a positive effect on profitability as measured by Return on Equity (ROE).

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Journal Info

Abbrev

ijmp

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

International Journal of Management Progress is a peer-reviewed journal that publishes original theoretical and applied papers covering all fields of management including, but not limited to: business ethics, business strategy, entrepreneurship and innovation, marketing, human resource management, ...