Advances In Social Humanities Research
Vol. 4 No. 9 (2026): Advances In Social Humanities Research

The Effect of Current Ratio, Debt-to-Equity Ratio, and Net Profit Margin on Profit Growth (An Empirical Study of Food and Beverage Companies Listed on the Indonesia Stock Exchange for the Period 2020–2024)

Kariska Safitri (Universitas Ekuitas Indonesia)
Mokhamad Anwar (Universitas Padjadjaran)
Cecep Taofiqurrochman (Universitas Ekuitas Indonesia)



Article Info

Publish Date
07 Sep 2026

Abstract

Profit growth is an important indicator for assessing a company’s financial performance and sustainability, particularly in the food and beverage sector, which plays a strategic role in the Indonesian economy. However, during the 2020–2024 period, companies in this sector experienced significant fluctuations in profit growth, reflecting challenges in maintaining financial stability amid dynamic economic conditions. This study aimed to analyze the effects of the Current Ratio, Debt-to-Equity Ratio, and Net Profit Margin on profit growth among food and beverage companies listed on the Indonesia Stock Exchange (Bursa Efek Indonesia, IDX) during the 2020–2024 period. This study employed a quantitative approach using secondary data obtained from the annual financial reports of companies listed on the IDX. The sample was determined using a purposive sampling technique based on predetermined criteria, resulting in eight companies with 40 observations over the five-year research period. Data analysis was conducted using descriptive statistical analysis, classical assumption tests, multiple linear regression analysis, correlation analysis, coefficient of determination analysis, and hypothesis testing through t-tests and F-tests. The results showed that the Current Ratio did not have a significant effect on profit growth, and the Debt-to-Equity Ratio also did not have a significant effect on profit growth. Meanwhile, the Net Profit Margin had a significant effect on profit growth. Simultaneously, the Current Ratio, Debt-to-Equity Ratio, and Net Profit Margin had a significant effect on profit growth. These findings indicate that a company’s ability to generate net profit from sales plays an important role in supporting profit growth among food and beverage companies.

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Journal Info

Abbrev

vo

Publisher

Subject

Humanities Engineering Law, Crime, Criminology & Criminal Justice Social Sciences

Description

Advances In Social Humanities Research is a double blind peer-reviewed academic journal and open access to social and humanities fields. The journal is published monthly by Sahabat Publikasi Advances In Social Humanities Research provides a means for sustained discussion of relevant issues that fall ...