AMAR (Andalas Management Review)
Vol. 9 No. 1 (2025)

Factors Affecting Profitability in Indonesia's Retailing sub-sector (2019-2023)

Putri, Nurcika (Unknown)
Fitriani, Dina Amelia (Unknown)
Maiyaliza (Unknown)



Article Info

Publish Date
26 Jun 2025

Abstract

This investigation seeks to examine the impact of liquidity and solvency on profitability in retailing sub-sector companies. Liquidity is gauged through the Current Ratio (CR) ratio while solvency uses Debt to Equity Ratio (DER). Profitability is gauged using Return on Equity (ROE). The investigation was executed utilizing a case study method using financial statements to serve as a source of secondary data. The data was examined using multiple linear regression methods to assess the connection involving the independent variables (liquidity and solvency) and the dependent variable (profitability). The findings of this investigation suggest that liquidity does not possess a significant outcome on profitability, while solvency possesses a positive and significant outcome. This research highlights the significance of good liquidity and solvency management in improving the corporation’s financial achievement. The findings are anticipated to be a reference for companies in formulating more effective financial strategies, as well as contributing to further research in the same field.

Copyrights © 2025






Journal Info

Abbrev

amar

Publisher

Subject

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

Description

AMAR (Andalas Management Review), with registered number ISSN 2548-155X (Online) and ISSN 2476-9282 (Print), is a peer-reviewed journal published twice a year (May and November) by The Management Institute, Faculty of Economics, Universitas Andalas. AMAR is intended to be the journal for publishing ...