International Journal of Economics, Business Management and Accounting
Vol. 4 No. 1 (2022): January 2022

The Effect of Debt on Business Profit (Case Study at PT. Gudang Garam Tbk Listed on the Indonesia Stock Exchange for the 2015-2020 Period)

Dody Faraitody Teguh (Universitas Putra Indonesia)
Astri Dwi Andriani (Universitas Putra Indonesia)
Fitri Pebryanti (Universitas Putra Indonesia)



Article Info

Publish Date
28 Nov 2023

Abstract

Research conducted by the author to determine the effect of debt on operating profits at PT. Gudang Garam Tbk. Listed on the Indonesian Stock Exchange for the 2015-2020 period. The independent variable is debt, the dependent variable is operating profit. The sampling type chosen was purposive sampling. Quantitative data type. Secondary data sources include financial reports accessing www.idx.co.id and each company's website. The research results show that the effect of debt on business profits is two linear factors, characterized by the regression equation Ý = -1.242 + 0.519 x. This means that every time debt is increased by 1%, it will be followed by an increase in operating profit of 0.519 at a constant of 1.242. There is a very strong and significant influence between debt and business profits as shown by the Pearson product moment correlation coefficient r = 0.713 with tcount = 2.032, this value is greater than ttable = 2.132. In accordance with the correlation coefficient value above, the coefficient of determination is 0.508, which means that the influence of debt on business profits is 50.8% and the remaining 49.2% is explained by other variables not included in this analysis

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Journal Info

Abbrev

ijebma

Publisher

Subject

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

Description

International Journal of Economics, Business Management and Accounting (IJEBMA) is a research journal in the discipline of economics, business, management, information management, and accounting which is aimed to contribute to a novelty or state-of-the-art academic development or real-world business ...