Effect of Current Ratio, Debt to Equity Ratio and Total Asset Turnover on Profit Growth in Pharmaceutical Sub Sector Companies Listed on the Indonesia Stock Exchange for the 2014-2018 Period

Authors

  • Dede Hertina*, Mohamad Bayu Herdiawan Hidayat, Fika Deningtyas

Abstract

This study aims to determine the effect of Current Ratio, Debt to Equity Ratio, and Total Assets
Turnover on profit growth. The method used in this research is descriptive and verification with a
quantitative approach. The population in this study was the pharmaceutical sub-sector companies listed on
the Indonesia Stock Exchange for the period 2014-2018 using a purposive sampling technique. There were 8
companies as a sample. The results showed that Current Ratio, Debt to Equity Ratio and Total Assets
Turnover had a significant effect on profit growth. The results of the study partially show that the Debt to
Equity Ratio has an effect on profit growth, while the Current Ratio and Total Assets Turnover have no
effect on Profit Growth.

Published

2020-10-15

Issue

Section

Articles