The Analysis of the Influence of Current Changes toward RA, DAR,

TATO, ROA, and PER in Predicting the Growth of Profits by

Considering Company Size in Company That Is Joined in Lq45 Index

Link in 2013 -2016

Wikan Budi Utami

Institute of Economic Science AAS, Surakarta, Indonesia

Keywords: CR, DAR, TATO, ROA, PER

Abstract: This study aims to determine the effect of the parsiil and simultaneous of CR, DAR, TATO, ROA, and PER

in predicting profit growth by considering firm size at company incorporated in LQ45 index year 2013 -2016

with company size as control variable. The technique of determining the sample in this research is by using

purposive sampling. The method applies a descriptive qualitative. From result of F test, it is known that

Current Ratio (Δ CR) change, Debt Asset Ratio (Δ DAR) change, Total Asset Turnover (Δ TATO), Return

On Asset (Δ ROA) change, Price Earning Ratio (Δ PER) simultant significant effect on profit growth variable

at go public company listed in index LQ 45 in Indonesia with company size (Size) as control variable. From

result of t test known that change of Total Assets Turn Over and change of Return On Assets partially have

significant effect to profit growth (Δ EAT). Variable of change of Curent Ratio (ΔCR), change of Debt Asset

Ratio (Δ DAR), Price Earning Ratio (ΔPER) change partially no significant effect to earnings growth variable

with firm size as control variable.

1 INTRODUCTION

The rapid development of capital markets has made

investors interest in investing in companies that offer

high profits. One of the lure of investors in investing

in companies is the profit that is offered by the

companies. Companies that can provide high returns

to investors will be reflected in good corporate

financial performance. Good earnings changes,

suggesting that the company has a good financial

performance which it will increase the value of the

company (Simorangkir, 1993). Profit growth is a

change in the percentage increase in profit earned by

the company.

The main purpose of financial ratio analysis is to

give an indication of company performance in the

future. Financial ratios are used to predict corporate

earnings. Increase or decrease in profit will affect the

other ratios like Curent Ratio (liquidity ratio), Debt

Assets Ratio (solvency ratio), activity ratio (Total

Assets Turn Over) and profitability ratio (Return On

Assets). According to Riyanto (1995), financial ratios

can be grouped generally into liquidity ratio, solvency

ratio (leverage), activity ratio and profitability ratio.

The four ratios will be very useful for the management

in carrying out operations or activities of the company,

especially in planning and in deciding of whether short

or long term. In addition, it becomes another

consideration for investors in investing capital is by

considering at the value of a company. It means that it

can be reflected from financial, information, corporate

financial flows, and financial performance of the

company.

There are some researches on the ability of financial

ratios in predicting earnings has been done with many

diverse results. Firstly, Safitri (2016) conducts a study

to determine the influence of various financial ratios

to profit growth of PT. Kalbe Farma tbk. In the result

can be known that variable inventory turnover has a

significant influence in profit growth and debt to asset

ratio, net profit margin. Meanwhile, inventory

turnover and return on equity have a significant effect

on profit growth return on equity that has no

significant effect to profit growth. In addition,

Mahaputra (2012) investigates the effect of current

ratio, debt to equity ratio, total assets turnover, and

profit margin on profit growth. The test results show

that the current ratio, debt to equity, total asset

Utami, W.

The Analysis of the Inﬂuence of Current Changes toward RA, DAR, TATO, ROA, and PER in Predicting the Growth of Proﬁts by Considering Company Size in Company That Is Joined in

LQ45 Index Link in 2013 -2016.

DOI: 10.5220/0010045004710477

In Proceedings of the 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and Technology (ICEST 2018), pages 471-477

ISBN: 978-989-758-496-1

471

turnover, and profit margin have a significant

influence on profit growth.

Based on the findings of the researchers that have

been stated, the author interests in re-testing the

ability of the liquidity ratio (Cureent Ratio), solvency

(Debt Assets Ratio), activity (Total Assets Turn

Over), profitability (Return On Assets), and market

ratio (Total Assets Turn OverRatio) in predicting

profit growth by considering the size effect.

2 LITERATURE REVIEW

2.1 Financial Ratio Analysis

This ratio will be able to explain and provide an

overview of the analysts about either the bad state or

the financial position of a company (Nuryanto et al.,

2014). Financial ratio analysis is an analytical tool

that gives an indication that the company has

sufficient cash to fulfill the financial obligations, the

amount of receivables that is quite rational, the

efficiency of the company's inventory management,

the plan of good investment, and the healthy Return

On Assets so that the goal of maximizing shareholder

wealth can be achieved (Sartono, 2001). The ratios

typically are as follows:

a. Liquidity Ratio

According to Prihadi (2008), liquidity is the

company's ability to pay off short-term liabilities.

Liquidity measurements typically associate

short-term liabilities with current assets available

to pay them off. Although, this ratio does not

explain about the solvency issues, meanwhile a

bad liquidity ratio in the long run will affect the

solvency of the company. The measure of

corporate liquidity in this research is CR. It is

obtained by comparing current assets and

liabilities. Thus, the higher of the current assets

the higher of the current ratio that means the

higher of the level of corporate liquidity. In the

contrary, the higher the amount of unused cash

will ultimately lower the level of profitability.

Thus, there is always a trade-off between

liquidity and profitability (Mardiyanto, 2008).

b. Solvency Ratio

This ratio measures the company's ability to meet

long-term liabilities. A non solvable company is

a company which total debt that is greater than

its total assets. This ratio measures the company's

long-term liquidity and focuses on the right side

of the balance sheet. Solvency ratios that are

applied in this research are: Debt To Total Assets

Ratio. This ratio calculates how far funds that are

provided by creditors. The high ratio of total debt

to total assets indicates that the company uses

high financial leverage. The application of high

financial leverage will increase the stock capital

equity (Return On Equity) quickly. On the

contrary, if sales decrease in capital stocks, the

equity will decrease.

c. Activity Ratio

This ratio concerns at several assets and

determines what level of activity these assets that

are at a given level of activity. The low assets at

a certain level of sales will result in an increasing

amount of excess funds that are embedded in

these assets. Excess funds will be better in the

investing on other assets that are more

productive. It applies Total Asset Turn Over

(TATO).

d. Profitability Ratio

The profit margin ratio shows the company's

ability to generate net income at certain sales

levels. It can be seen directly in the common-size

analysis for the income statement. A low profit

margin signifies a company's ability to generate

profits that are too low for a certain level of cost,

a cost too high for a certain level of sales, or the

combination. In general, a low ratio may indicate

inefficient management. The ratio that is applied

in calculating profitability is Return On

Investment (ROI), Return On Equity (ROE) and

Return On Assets (ROA).

e. Market ratios

The company's high Price Earning Ratio (PER)

reflects to the valuable of growth and have the

valuable prospects. Although, in terms of

investors, the price Earning Ratio (PER) that is

too high that may not be attractive because stock

prices will probably not rise again which means

the possibility of gaining capital gains will be

smaller.

2.2 Company Profit

It classifies as the result of the last operation net of

interest and taxes. Changes in earnings either a

decrease or an increase that is caused by the selling

price factor that can be used as a measurement of sales

activities because this is due to changes in the

quantity or volume of goods sold that have a direct

relationship with sales activities. In addition, profit

growth can be caused by changes in components of

liquidity, profitability, solvency, and activity.

ICEST 2018 - 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and

Technology

472

2.3 Company Size (Size Effect)

It is one tool to measure the size of a company.

Employees, assets, sales, market value and value

added are some common measurement in order to

determine the size of a company (Hart and Oulton in

Juliana, 2003). There are some fundamental

differences between large and small companies. Elton

and Gruber in Juliana (2003) say that larger companies

will have easier access to the capital market. Small

companies shares of the trading frequency level that is

not as fast and as easy as a large company's stock.

Besides, Scherer in Juliana (2003) finds the evidence

that larger companies are more stable and growth

patterns that can change rapidly than small companies.

Therefore, the ability of large companies is to create

various product lines and operations easier. In

addition, Damayanti in Juliana (2003) considers the

size of the company can be seen from the total assets.

The result shows firm assets have not effect on the

ability to predict financial ratios to future earnings

growth in manufacturing companies.

2.4 Related Studies

Some of the previous research that have been done.

They are as follows:

Firstly, Safitri (2016) finds that Debt to Asset

Ratio, Variable Inventory, Debt to Asset Ratio, Net

Profit Margin, Inventory Turnover and Return on

equity have significant influence to profit growth,

meanwhile, Variable Current Ratio and Variable

Return on have not significant effect on profit growth.

Furthermore, Susanti (2014) shows (1) Total

Assets Turnover, Net Profit Margin, and Return on

Assets simultaneously have a significant effect on

profit growth; (2) Total Assets Turnover, Net Profit

Margin, and Return on Assets partially significant

effect to profit growth; (3) Return on Assets have

dominant influence to earnings growth because have

coefficient value of partial.

Besides, Gunawan and Wahyunu (2013) conducts

the research with the aim to: (1) test partially the

influence of financial ratios on profit growth in

trading companies in Indonesia Stock Exchange. (2)

test simultaneously the influence of financial ratios on

profit growth in trading companies in Indonesia Stock

Exchange (3) to know the most dominant financial

ratios that influence to profit growth in trading

company in Indonesian Stock Exchange (4) know the

aspect of asset, income management, aspect debt, and

equity to profit growth in trading companies in

Indonesia Stock Exchange. From t test result show

Total Assets Turn Over, Fixed Assets Turn Over,

Inventory Turn Over partially influence to profit

growth, while Curret Ratio, Debt To Assets Ratio,

Debt To Equity Ratio partially no significant effect to

profit growth. From the F test shows Total Assets

Turn Over, Fixed Assets Turn Over, Inventory Turn

Over, Curret Ratio, Debt To Assets Ratio, Debt To

Equity Ratio simultaneously have a significant effect

on profit growth.

Adisetiawan (2012) shows that variable of

Operating Income to Total Assets (OITL) and Current

Ratio (NPM) partially have significant effect to profit

growth. Meanwhile, the variable Working Capital to

Total Asset (WCTA), Current Liabilities To

Inventory (CLI), Total Asset Turnover (TAT), and

Gross Profit Margin (GPM) have no significant effect

on profit growth. The six variables used in this study

(WCTA, CLI, OITL, TAT, NPM and GPM)

simultaneously have no significant effect on profit

growth, with predictive ability of the six variables of

4.4%.

The last one is Mahaputra (2012) that finds that

the current ratio, debt to equity, total asset turnover,

and profit margin have a significant influence on

profit growth.

2.5 Hypothesis

The changes in Curret Ratio, Debt Assets Ratio, Total

Assets Turnover, Return On Assets and Price Earning

Ratio simultaneously have a significant effect on the

profit growth of companies incorporated in the LQ45

Index of 2013 -2016 with firm size as control

variables.

3 RESEARCH METHODS

This research is descriptive quantitative which

explains the relationship between variables by

analyzing numerical data (numbers) and using

statistical methods through hypothesis testing. This

research is a case study research company that is

incorporated in the index LQ45 in Indonesia Stock

Exchange in 2013-2016. The source data is taken

from this study consists of Annual Reports published

by the company that becomes the object of research.

The population that is used is all companies that are

incorporated in LQ45 period 2013-2016 that are listed

on Indonesia Stock Exchange (IDX). Furthermore,

the technique is by applying purposive sampling. It

means criteria of companies that are incorporated in

the LQ45 period 2013-2016 that are listed on the

Indonesia Stock Exchange (IDX). There are the

samples like companies that are incorporated in LQ45

The Analysis of the Inﬂuence of Current Changes toward RA, DAR, TATO, ROA, and PER in Predicting the Growth of Proﬁts by

Considering Company Size in Company That Is Joined in LQ45 Index Link in 2013 -2016

473

period 2013-2016, not engaged in services, had an

issue financial statements as of December 31, 2013 –

2016, had financial statement data related to the

measurement of variables in the study, and had a

positive profit.

4 RESULTS AND DISCUSSION

4.1 Classic Assumption Test

4.1.1 Normality Test

Normality test was performed by Kolmogorov

Smirnov test from the residual value of a regression

model (Ghozali, 2005). From the test results of

Kolmogorof Smirnov normality that appears in table

4.1 shows the significant value of 1.158> α = 0.005

then the data is normally distributed.

Table 1: Normality Test Results

One-Sam

le Kolmo

orov-Smirnov Test

Unstandardized Residual

N 56

a,,b

Parameters Normal Mean .0000000

Std. Deviation .18304339

Most Extreme

Differences

Absolute .155

Positive .155

ative -.124

Kolmo

orov-Smirnov Z 1.158

. Si

(

2-tailed

)

.137

4.1.2 The Test Autocorelation

Table 2: Test Results Auto Correlation Durbin-Watson

Method

Var ia ble D- W Criteria Conclusion

X1,X2,

X3,X4,

1,914 4-du > DW > du

2,2322>1,914 >1,7678

No problem

autocorrelation

The term autocorrelation can be defined as the

correlation between members of a series of

observations sorted (Gujarati, 2001). The valuable of

regression model is a regression independent of

autocorrelation. To determine whether there is

autocorrelation symptoms in the regression

calculation of this study or not, it will be used durbin

watsen test (DW TES). From the results of the above

table it is known that the D-W test value of 1.914

where the number is between du = 1.7678 and 4-du =

2,2322 it can be concluded there is no autocorrelation,

then the model that is used in this study is feasible for

basic analysis.

4.1.3 Heteroscedasticity Test with Glejser

Test

The purpose of the heteroscedasticity test to test

whether in the regression model there is a variance

inequality of the residual one observation to the other

or not. If the variance of the residua one observation

to another observation remains then it is called

homoscedasticity. A good regression model is no

heteroscedasticity. From table 4.3 the value of

variable significance of liquidity / Current Ratio

0,216, significance of solvability variable (DAR)

0.147, activity variable (TATO) 0,174, profitability

variable (ROA) 0, 575 and variable PER 0, 695. The

significance value of the five independent variables is

greater than α = 0.05 means the regression model that

does not occur heteroscedasticity. Company size

(SIZE) as control variable value of significance

0.752, greater than α = 0.05 means regression model

that does not occur heteroscedasticity.

Table 3: Test of Heteroskedastisitality

Var ia ble T Sig Conclusion

(Constant)

∆CR

∆DAR

∆TATO

∆ROA

∆PER

SIZE

4.477

1.254

-1.475

-1.381

-0.565

-0.396

-0.319

0.000

0,216

0.147

0.174

0.575

0.694

0.751

None

4.1.4 Multicolinearity Test

The purpose of multicollinearity test is to know

whether the regression model found a correlation

between independent variables (independent) or not.

The valuable model should not have a correlation

between independent variables (no multicolonierity).

If the VIF value is less than 10, then there is no

multicollinearity to the data being tested. In the

contrary, if the VIF value is greater than 10, it means

multicollinearity to the data being tested. From the

results of multicolinearity test in table 4.4 can be

known that VIF value CR 1.067 variable, DAR

variable 1.449, TATO variable 1.495, ROA variable

1,191 and variable PER 1,193. VIF value of Size

variable as control variable 1,034. VIF value of the

five independent variables and one control variable is

smaller than 10 so it can be said that the model that is

no multicollinearity between these variables.

From multicollinearity test results that value

tolerance values CR 0.937 variables, DAR variable

0.690, TATO variable 0.669, ROA variable 0.840,

and variable PER 0.838. The tolerance value of the

ICEST 2018 - 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and

Technology

474

Size variable that is used as the control variable is

0.967. It values the five independent variables and

one control variable is greater than 0.1 so it can be

said that the model that does not have

multicollinearity among variables.

Table. 4: The Test Multikolinearitanity

Var ia ble Tolerance VIF Conclusion

DAR

TATO

ROA

PER

SIZE

0,937

0,690

0,669

0,840

0.838

0,967

1,067

1,449

1,495

1.191

1,193

1,034

None

4.2 Hypothesis Testing

4.2.1 Multiple Linear Regression Equation

Based on the calculation of SPSS that appears in table

4.5 regression equation as follows:

Y=0,137 + 0,043 CR - 0,206 DAR - 0,739 TATO

+ 0,974 ROA – 0,079 PER – 0,013 SIZE + e

From the analysis results can be seen that the

independent variables that have a positive effect on

profit growth is Current Ratio with coefficient of

0.043 and Return On Assets with coefficient 0.974.

This means that when the Current Ratio, and Return

on Total Assets increases then profit growth also

increases. While the independent variables that

negatively affect the profit growth is Debt Assets

Ratio with coefficient 0.206, Total Assets Turn Over

with coefficient 0.739 and Price Earning Ratio with

coefficient 0.974. This means that if the Debt Assets

Ratio, Total Assets Turn Over and Price Earning

Ratio decrease then the profit growth increases.

Company size (Size) as control variable negatively

affects profit growth with coefficient 0,013.

Table 5: Summary of Hypothesis Test Results

Var ia ble

Tmeasure Si

Conclusion

Constans

DAR

TATO

ROA

PER

SIZE

0,137

0,043

0,206

0,739

0,974

0,079

0,013

1,278

-1,414

-3,642

18,745

-1,075

-0,216

0,207

0,164

0,001

0,000

0,288

0,830

None

Influence

Significantly

Influence

Significantly

None

Influence

Significantly

Fhitung 68,322 0,000

R2 0,882

4.2.2 Individual Parameter Significant Test

(Test -t Statistic)

The t test is used to know the partial significance of

the independent variables: Curent Ratio (X1), Debt

Assets Ratio (X2), Total Assets Turn Over (X3),

Return On Assets (X4) and Price Earning Ratio (X5)

namely: Profit Growth (ΔY).

From table 5 above is known magnitude influence

of each independent variable to the dependent

variable is as follows:

1) Test the hypothesis of the influence of Current

Ratio on profit growth.

From result of calculation of significance t for

variable of Current Ratio equal to 0207> α

(0,05). This means that the Current Ratio in

parsiil no significant effect on profit growth

with the size of the company as a control

variable.

2) Test the hypothesis Debt Assets Ratio to profit

growth.

From the calculation results significance t for

the variable Debt Assets Ratio of 0.164> α

(0.05). This means that Debt Assets Ratio has no

significant effect to profit growth with firm size

as control variable.

3) Hypothesis test Total Assets Turn Over on profit

growth

From the calculation results t significance for

the variable Total Assets Turn Over Ratio of

0.001 <α (0.05). This means Total Assets Turn

Over has a significant effect on profit growth

with firm size as a control variable.

4) Test the hypothesis Return On Assets to profit

growth

From the calculation results significance t for

the variable Return On Assets of 0.000 <α

(0.05). This means Return On Assets has

significant effect to profit growth with firm size

as control variable.

5) Test the hypothesis Price Earning Ratio to profit

growth

From the calculation results significance t for

Price Earning Ratio variable of 0.288> α (0.05).

This means Price Earning Ratio has no

significant effect to profit growth with firm size

as control variable

4.2.3 Test F

From the results of statistical calculations that are

applied SPSS show in table 5 obtained F value count

of 68.322 with a significance level of 0.000. The

resulting significance value of F is smaller than α =

The Analysis of the Inﬂuence of Current Changes toward RA, DAR, TATO, ROA, and PER in Predicting the Growth of Proﬁts by

Considering Company Size in Company That Is Joined in LQ45 Index Link in 2013 -2016

475

0.05. This means that the variable Current Ratio, Debt

Assets Ratio, Total Assets Turn Over, Return On

Assets, Price Earning Ratio and Size control variables

simultaneously significantly influence the profit

growth variable.

4.2.4 Coefficient of Determination (R2)

From the calculation results with SPSS program that

appears in table 5 can be seen that the coefficient of

determination that can be seen from Adjusted R

Square, obtained for 0.882. This means that 88.2% of

profit growth can be explained by the variable

Current Ratio, Debt Assets Ratio, Total Assets Turn

Over, Return On Assets, Price Earning Ratio and Size

in this study, while the remaining 11.8% that is

explained by other variables that are not investigated

in this study.

4.3 Discussions

Individual test result by using t test shows that there

are only two variables that is growth of Total Assets

Turn Over and Return on Assets which have

significant effect to profit growth of company that is

incorporated in LQ 45 Index 2013-2016.

The results of this study indicate the growth of

Total Assets Turn Over significantly affect to the

profit growth of companies that are incorporated in

the LQ 45 Index 2013-2016. It can be assumed that

the asset turnover of the company in generating profit

is very effective. It means that Total Assets Turnover

has a positive influence on the Profit Growth. The

faster the asset turnover rate reflects to the net profit

generated that will increase as the company that has

been able to utilize the assets to increase sales that

affect the income . Thus, the more effective asset

turnover of the company or the management of assets

capable of producing high performance companies

that can increase corporate profits and impact on

increasing the return rate (return) in the investor.

Besides, the results of this study are in line with the

results of Gunawan and Wahyuni (2013) that state

that there is significant influence of Total Assets

Turnover on Profit Growth at Trading companies that

are listed in Indonesia Stock Exchange period 2006-

20 2011. Furthermore, the results of this study are in

line with the results of Mahaputra (2012) states that

there is a significant influence of Total Assets

Turnover on Profit Growth at manufacturing

companies that are listed on IDX. Moreover, the

results of this study are in line with the results of

Susanti's (2014) research which states Total Assets

Turnover partially significant effect on future

earnings growth in automotive companies in IDX.

According to the theory of Horne and Wachowicz

(2005 : 221) state that Total Assets Turnover

describes the relationship of net sales with total

assets. It indicates the capability of funds that are

embedded in the overall rotating asset in a given

period or the capability of the capital invested to

generate a "Revenue". The results of this study are not

in line with research conducted by Adisetiawan

(2012) which states Total Assets Turnover has no

significant effect on profit growth in trading

companies in IDX.

In the aspect on ROA, the results of this study

indicate the growth of Return on Assets significantly

influence the profit growth of companies that are

incorporated in the LQ 45 Index 2013-2016. Besides,

the results of this study can be assumed that every one

dollar assets invested in companies that are

incorporated in the LQ45 Index effectively generate

profits. Positive Return On Assets (ROA) shows that

the total assets that are used for the company's

operations that are able to provide profits for the

company. In the contrary, if the negative ROA shows

the total assets that do not give a profit. Furthermore,

the results of this study are in line with research that

is conducted by Susanti (2014)) which states Return

on Assets partially significant effects on profit growth

in automotive companies in IDX.

Individual test result of using t test is found that

the variable that influence is not significant to the

profit growth of companies that are incorporated in

Index LQ 45 is variable growth Curent Ratio, growth

Debt Asset Ratio and growth Price Earning Ratio.

Besides, in the Curent Ratio aspect has no

significant effect on profit growth in companies

incorporated in the LQ45 Index. This means that the

company's ability to meet its short-term liabilities

does not guarantee the availability of working capital

to support the company's operational activities so that

the profit to be achieved is not as expected. This

means that investments in current assets are too great

that could be due to the company’s trial. Liquidity

levels that are too high will have an adverse effect on

profit growth because current assets generally result

in lower returns than fixed assets. Then, the result of

this research is in line with research of Gunawan and

Wahyuni (2013) which state that Current Ratio has no

significant effect on Profit Growth in Trading

Company registered in IDX period 2006-2011.

Meanwhile, the result of this study is not in line with

the research Mahaputra (2012) which shows that the

current ratio has a significant influence on profit

growth.

ICEST 2018 - 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and

Technology

476

Moreover, in the side of Debt Asset Ratio has an

insignificant effect on profit growth in companies

incorporated in the LQ45 Index. This indicates that

investment in the wealth of companies that are

incorporated in the LQ45 Index is more financed

from external sources of financing / from debt. The

source of financing from outside the company / from

the debt impacts the increase of interest expense that

is to be paid by the company so this gives an impact

on the decrease of company's profit. This could mean

the inability of the Debt To Assets Ratio influences

profit growth that may happen because the investment

in the wealth of the company fund is not able to cover

the entire interest expense that is to be paid by the

company. Thus, it can result in a decrease in profits

that have been earned even the company could lose.

In other words, the results of this study are in line with

the research of Gunawan and Wahyunu (2013). In the

contrary, the results of research Safitri (2016) has a

significant influence on profit growth of PT. Kalbe

Farma tbk.

In addition, the aspect of PER has an insignificant

effect on profit growth in companies that are

incorporated in the LQ45 Index. This can be assumed

that the PER of LQ45 Index that is increased but it is

not followed by increasing investor confidence in the

future of the company so it does not aim the increase

of share price of companies that are incorporated in

LQ 45 Index.

5 CONCLUSION

It can be concluded that the changes of CA, DAR, and

PER have not significant effect on profit growth with

the firm size as control variable. Meanwhile, the

changes of TATO and ROA have a significant effect

on profit growth with firm size as control variables.

Hence, the changes in CR, DAR, TATO, ROA, and

PER that relates to Size control variables

simultaneously have a significant effect on profit

growth

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