The Influence of Company Growth and Debt Policy on Profitability at PT Wijaya Karya (PERSERO) 2015-2025

Abstract

Construction companies face financial challenges that require effective asset and debt management to maintain profitability. This study aims to determine the effect of company growth and debt policy on profitability at PT Wijaya Karya (Persero) Tbk for the period 2015–2025, both partially and simultaneously. This study uses a quantitative approach with an associative research type. The research population is the company's annual financial reports, with a sample of 11 annual financial reports for the period 2015–2025 determined using a saturated sampling technique. Secondary data were collected through observation, documentation, and literature study. Data analysis techniques include descriptive statistics, classical assumption tests, simple and multiple linear regressions, correlation and determination coefficients, as well as t-tests and F-tests with the help of SPSS 27. The results of the study indicate that company growth has a positive and significant effect on profitability, while debt policy has a negative and significant effect. Simultaneously, company growth and debt policy have a significant effect on profitability with an R Square value of 0.850. In conclusion, effective asset growth management and prudent debt policies are needed to support company profitability.