MANDAR: Management Development and Applied Research Journal
Vol 7 No 2 (2025): June (2025)

The Effect of Capital Structure, Liquidity, and Profitability on Corporate Financial Performance

Purwasih, Rani (Unknown)
Suhardi (Unknown)
Makrus, Mohamad (Unknown)



Article Info

Publish Date
15 Jun 2025

Abstract

This study aims to determine the effect of capital structure, liquidity, and profitability on the financial performance of transportation and logistics sector companies listed on the Indonesia Stock Exchange during the 2020-2024 period. The variables used in this study include Debt to Equity Ratio (DER), Current Ratio (CR), and Return on Assets (ROA) as independent variables, and Return on Equity (ROE) as the dependent variable. The analysis method used is panel data regression with the Random Effect Model (REM) approach, which is analysed with Eviews 12 software. The results showed that capital structure (DER) has a negative and significant effect on financial performance (ROE), while liquidity (CR) and profitability (ROA) have no significant effect. However, simultaneously, the three variables have a significant impact on financial performance. This finding confirms the importance of optimal capital structure management in improving company performance, while liquidity and profitability require more effective strategies to contribute maximally to company profits.

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Journal Info

Abbrev

mandar

Publisher

Subject

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

Description

E-Jurnal Mandar (Online ISSN: 2654-4504) dan (Print ISSN: 2721-1436) adalah jurnal ilmiah elektronik yang diterbitkan online dua kali dalam setahun (setiap 6 Bulan). E-Jurnal Mandar bertujuan untuk meningkatkan kualitas ilmu pengetahuan dan menyalurkan minat berbagi dan penyebaran pengetahuan bagi ...