Pengaruh WCTA, DER, TAT dan NPM Terhadap Pertumbuhan Laba Pada Perusahaan Manufaktur Bursa Efek Indonesia

Abstract

ABSTRACT

Purpose - The profit growth of a company may increase for the current year but can also decline for the following year. Because profit growth cannot be ascertained, it is necessary to have an analysis to predict profit growth rates.      This study aims to determine the effect of financial ratios on profit growth simultaneously and partially.

Design/methodology The research population is manufacturing companies listed on the Indonesia Stock Exchange from 2016-2017. The sample selection used a purposive sampling method so that a sample of 38 companies was obtained in 2016-2017. Hypothesis testing of this study was carried out using the method of multiple linear regression analysis.

Findings –The results of the simultaneous study (f test) state that Working Capital to Total Assets (WCTA), Debt to Equity Ratio (DER), Total Asset Turnover (TAT), and Net Profit Margin (NPM) have a jointly significant effect on earnings growth . While the results of the study partially (t test) states that WCTA has a significant effect on Profit Growth, DER does not have a significant effect on Profit Growth, TAT does not have a significant effect on Profit Growth, and NPM does not significantly influence Profit Growth. For further research it is recommended to add other variables that might predict earnings growth more precisely, such as Current Ratio, Debt Ratio, Inventory Turnover and so on.