THE INFLUENCE OF FINANCIAL RATIOS AGAINST GROWTH OF PROFITS AT MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

Abstract

This research aims to know the influence of current ratio, debt to equity, return on assets, return on equity, and net profit
margin against profit growth at the company's manufacturing Indonesia stock exchange. The data used are secondary data
from the Indonesia capital market financial report directory (ICMD). The population of this research all the manufacturing
companies listed on the Indonesia stock exchange. The samples used in the study was 63 manufacturing companies listed on
the Indonesia stock exchange. Method of determination of the sample used by using purposive sampling. Results descriptive
statistics show that current ratio value is quite high compared to other variables, this indicates that the high short-term
payment companies rather than increase its own capital to guarantee debt . Based on the correlation analysis shows the
variable current ratio, debt to equity ratio, return on assets, and net profit margin is correlated with positive and significant
profit growth supported by empirical evidence, while the return on equity is correlated negative and significant profit growth
supported by empirical evidence.
Keywords: Liquidity; Solvency; Profitability; the profit growth