Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

The Effect of Liquidity, Solvability and Activity Ratios on Profit Growth (Study on Consumer Goods Industry that is Listed In Indonesia Stock Exchange on 2015-2019 Year of Period)

Author(s): Hanan Haura Hazimah,Suherman, Umi Mardiyati

Purpose: This research aims to determine the effect of liquidity, solvability and activity ratios on profit growth that is proxied by CR, QR, DAR, DER, ITO, TATO, on consumer goods industry that is listed on IDX for 2015-2019 year of period. Methodology: Samples used on this research were 34 companies that are chosen using purposive sampling technique. This research uses descriptive statistics, linear regression analysis and hypotheses test under Eviews9 as the software to cultivate the data. Findings: This research found that ITO and TATO have negative and significant effect on profit growth. On the other side, CR, QR, DAR and DER have no effect on profit growth.

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