Effect of Liquidity and Capital Structure on Profitability in Manufacturing Company Listed In Indonesia Stock Exchange Period 2015-2016

Abstract

This study aims to determine whether there is a partial influence Current Ratio,
Quick Ratio, Debt to Equity Ratio and Total Assets Turnover on Profitability
(Return On Assets). This research uses quantitative data. The population used in
this study is a manufacturing company listed on the Indonesia Stock Exchange
period 2015-2016. The method used in this study is purposive sampling and
obtained a sample of 71 companies for each year in the period 2015-2016, so that
obtained as many as 142 data observation. Data analysis method used is multiple
linear regression analysis. The result of research partially states that the variable
of Total Assets Turnover influence to Profitability (Return On Assets), while
variable of Current Ratio, Quick Ratio and Debt to Equity Ratio have no effect to
Profitability (Return On Assets). Based on regression analysis, we found that CR ,
QR, DER and TATO have a significant effect on Profitability (ROA).
Keywords: Liquidity, Solvency, Activity and Profitability