THE INFLUENCE OF CURRENT RATIO AND DEBT TO EQUITY RATIO ON PROFIT GROWTH THROUGH RETURN ON ASSET IN FOOD AND BEVERAGE SUB-SECTOR COMPANIES REGISTERED ON BEI

Taufik Rivaldi

Abstract


This study aims to: (1) determine the effect of current ratio on return on assets, (2) determine the effect of debt to equity ratio on return on assets, (3) determine the effect of current ratio on profit growth, (4 ) determine the effect of debt to equity ratio on profit growth, (5) determine the effect of return on assets on profit growth, (6) determine the effect of the current ratio on profit growth with return on assets as an intervening variable, ( 7) determine the effect of debt to equity ratio on profit growth with return on assets as intervening variables in food and beverage sub-sector companies listed on the Indonesian stock exchange for the 2018-2022 period. This research method uses a type of quantitative research. Data analysis techniques in this study used panel data regression, classic assumption test, t test, f test and the coefficient of determination. Data processing in this study uses eviews 12. Based on the results of the study it can be concluded that the current ratio has no significant effect on return on assets, the debt to equity ratio has no significant effect on return on assets, the current ratio has no significant effect on profit growth, the debt to equity ratio has no significant effect on profit growth, return on assets has no significant effect on profit growth, return on assets mediates the effect of the current ratio on profit growth and return on assets mediates the effect of the debt to equity ratio on profit growth.

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