The Influence of Financial Ratio to Profit Growth

Abstract

The purpose of this study was determining the effect of financial ratios consisting of company size,
current ratio, debt to equity ratio, and total assets turnover on profit growth in Property, Real
Estate and Building Construction Service Sector Companies listed on the Indonesia Stock
Exchange in 2015-2018. Sampling technique employed in this study is purposive sampling
technique. There have been 13 companies sampled within 4 years, in order that 52 samples were
obtained. The analysis technique utilized in this study used panel data regression analysis. The
results of the research company size variables, current ratio, debt to equity ratio, and total assets
turnover have an impact on profit growth by 32.7%, and therefore the remaining 67.3% is
influenced by other factors outside the research variable. Partially, the variable Company Size
and Total Assets Turnover incorporates a significant positive effect on Profit Growth, while
Current Ratio and Debt to Equity Ratio don’t have any significant effect on Profit Growth