Aug 2026· Dinasti International Journal of Economics, Finance & Accounting· Vol 7, pp. 2231-2239· 0 citations· 27 references
Abstract
This research aims to examine and analyze the effect of capital structure (Debt to Equity Ratio) and working capital efficiency (Working Capital Turnover) on profitability (Return on Assets). The population in this study is manufacturing companies consistently listed in the LQ45 index of the Indonesia Stock Exchange during the 2022-2025 period. Sampling was conducted using a purposive sampling technique, resulting in 48 observation units from 12 companies over four years. The data were analyzed using the Panel Data Regression method. Based on the Chow Test and Hausman Test results, the Fixed Effect Model (FEM) was selected as the most appropriate estimation model. The results show that the Debt to Equity Ratio (DER) has a significant positive effect on profitability, supporting the relevance of the Trade-Off Theory regarding the benefits of tax shields. Conversely, Working Capital Turnover (WCTO) has no significant effect on profitability. This indicates that overly rapid turnover of receivables and inventory potentially generates hidden costs that can reduce estimated operational profits.
This study aims to analyse the impact of operating costs, capital structure and liquidity on profitability in companies in the Food and Beverage sub-sector listed on the Indonesia Stock Exchange (IDX) for the period 2021–2025. Profitability is measured using Return on Assets (ROA), operating costs are measured by the O...
Rincon M A Sihombing, Aris Riksan Pranata Sihombing, Doni Setiawan· International Journal of Bus...· 0 citations
This research is motivated by fluctuations in the financial performance of infrastructure companies due to changes in asset utilization efficiency and funding structure. This study aims to analyze the effect of Total Asset Turnover and Debt to Asset Ratio on Return on Assets in infrastructure companies listed on the In...
This study aims to analyze the effect of financial performance on firm value with capital structure as a moderating variable in infrastructure sector companies listed on the Indonesia Stock Exchange (IDX) during the 2023–2024 period. This study employed a quantitative method using secondary data obtained from the finan...
Toharoh_fitriyani01, Rosalia· Siber Nusantara of Economic...· 0 citations
This study aims to analyze the effect of liquidity and capital structure on firm value in financial sector companies listed on the Indonesia Stock Exchange for the 2022-2024 period. The study used a quantitative approach with secondary data obtained from the companies' financial reports. The sample was selected using a...
Muhammad Afrizal Dema Firmansyah, Syamsul Bahri, D. Anggarani· Journal of Public and Busine...· 0 citations
This study aims to analyze the effect of capital structure, leverage, and firm size on the financial performance of banking companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2024 period. The background of this research is based on global economic instability following the COVID-19 pandemic, which h...
Siti Sarah Mulyana, L. Hutagaol· Ilmu Ekonomi Manajemen dan A...· 0 citations
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