Financial Ratio to Predict the Growth Income: Study on Infrastructure Companies Listed on IDX

Ghina Kencana Mulia, Vina Kholisa Dinuka

2021

Abstract

This study aims to determine the effect of liquidity, solvency, activity, and profitability on profit growth in infrastructure sector companies in Indonesia. Liquidity is measured by Current Ratio (CR), solvency is measured by Debt-to-Equity Ratio (DER), activity is measured by Total Assets Turnover (TATO), and profitability is measured by Net Profit Margin (NPM). This study uses secondary data with data collection techniques using financial statements of infrastructure sector companies listed on the Indonesia Stock Exchange from 2014-2018. The purposive sampling method, obtained several 25 companies that fulfill the criteria with a total population of 80 companies, so that the total sample of observation for five years was 125 samples. Testing is assisted by the EViews 9 program using panel data regression analysis. The result shows that Total Assets Turnover has a significant positive effect on profit growth. While there is no significant positive impact between current ratio into income growth. This study also found that the Debt-to-Equity Ratio and Net Profit Margin have no significant adverse effect on profit growth in infrastructure sector companies.

Paper Citation

in Harvard Style

Mulia G. and Dinuka V. (2021). Financial Ratio to Predict the Growth Income: Study on Infrastructure Companies Listed on IDX. In Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS, ISBN 978-989-758-605-7, pages 19-25. DOI: 10.5220/0010860300003255

in Bibtex Style

@conference{icaess21,
author={Ghina Kencana Mulia and Vina Kholisa Dinuka},
title={Financial Ratio to Predict the Growth Income: Study on Infrastructure Companies Listed on IDX},
booktitle={Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,},
year={2021},
pages={19-25},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010860300003255},
isbn={978-989-758-605-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,
TI - Financial Ratio to Predict the Growth Income: Study on Infrastructure Companies Listed on IDX
SN - 978-989-758-605-7
AU - Mulia G.
AU - Dinuka V.
PY - 2021
SP - 19
EP - 25
DO - 10.5220/0010860300003255