EFFECT OF ASSET TURNOVER AND SOLVENCY ON PROFIT GROWTH IN REGISTERED FOOD AND BEVERAGE MANUFACTURING COMPANIES ON THE INDONESIAN STOCK EXCHANGE PERIOD 2017-2021

Ami Prastyani

Abstract


The development of the food and drink business world is currently increasingly rapid, financial reports have become an important medium in making decisions for every company. Companies measure total asset turnover to find out how many times assets rotate to generate sales. The solvency ratio or leverage ratio is a ratio used to measure the extent to which a company's assets are financed with debt and profit growth in a company. It can be used as a tool to assess how the company is performing. This research aims to determine the effect of asset turnover and solvency on profit growth in food and beverage manufacturing companies listed on the Indonesia Stock Exchange for the period 2017 - 2021. The research method used in this research is quantitative research methods. This research also uses quantitative analysis techniques, which use company financial ratio data. The results of this research are that asset turnover has a partial positive and insignificant effect on profit growth in food and beverage companies listed on the Indonesia Stock Exchange. Partially, solvency has a negative and insignificant effect on profit growth in food and beverage companies listed on the Indonesia Stock Exchange. Simultaneously, asset turnover and solvency have no effect on profit growth in food and beverage manufacturing companies listed on the Indonesia Stock Exchange for the 2017-2021 period.

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