The Influence of Leverage, Liquidity and Working Capital Efficiency on the Profitability of Manufacturing Companies Listed on the Indonesian Stock Exchange (BEI) for the 2018-2021 Period
DOI:
https://doi.org/10.1229/tecempresarialjournal.v18i2.272Keywords:
Leverage, Liquidity, Working Capital Efficiency, Profitability.Abstract
Manufacturing companies play a crucial role in job creation, driving the economy through the production and distribution of value-added products, promoting innovation and fostering technological development. Thus, the financial policies taken by manufacturing companies are an important part of maintaining financial health, improving operational performance, and achieving long-term growth goals of a nation. The aim of this study is to determine the partial and simultaneous influence of significant leverage, liquidity and working capital efficiency on the profitability of food and beverage subsector manufacturing companies listed on the IDX for the 2018-2021 period. The population in this study was 26 companies. The sampling method used in this study was purposive sampling with data obtained from 23 companies. Data were analyzed using multiple linear regression analysis. The research results show that Leverage has a negative and significant effect on profitability. Liquidity has a positive and significant effect on profitability. Working capital efficiency has a positive and insignificant effect on profitability. Leverage, liquidity and working capital efficiency simultaneously have a significant effect on profitability.
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