Role of Financial Performance Determines the Sustainability of Operating Profit Growth Yudhi Prasetiyo (a*), Devi Sri Ariyanti (b)
Dapartemen of Accounting, Faculty Economic and Business, Universitas Terbuka, Pondok Cabe, South Tangerang, Banten, Indonesia
yudhiprasetiyo[at]ecampus.ut.ac.id
Abstract
Business development, which is marked by the movement of profits obtained by the company, is one of the indicators determining business progress, the Covid-19 pandemic that has hit the world has become an obstacle for business entities in running their business development wheels due to financial factors. Their performance has become the basis for calculating and considering the state of the company. The purpose of this study is to see and analyze how the financial performance of the results of business operations affects the movement of company profits in various industrial companies that are on the Indonesian stock exchange for the 2016-2021 period. This type of research uses a quantitative explorative basis. The sample of this company is industrial companies listed on the Indonesia Stock Exchange totaling 126 companies. The sampling technique used was purposive sampling with secondary data in the Indonesian Stock Exchange database. Multiple regression is the method of analysis in this study. The results showed that the financial performance as measured in the ratio of activity, liquidity, profitability, and solvency with the measurement proxies determined in this study did not have a significant effect on profit growth
Keywords: Ratio Activity- Liquidity- Profitability- Solvency- Profit Growth
