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Influence Analysis of Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), Debt To Equity Ratio (DER), and current ratio (CR), Against Corporate Profit Growth In Automotive In Indonesia Stock Exchange

Author

Listed:
  • Mohd. Heikal
  • Muammar Khaddafi
  • Ainatul Ummah

Abstract

The purpose of this research to analyze the effect of Return On Asset, Return On Equity, Net Profit Margin, Debt To Equity Ratio and Current Ratio toward growth income either simultaneously or partially on automotive companies that were listed in Indonesia stock exchange. Independent variables used in this research were Return On Asset, Return On Equity, Net Profit Margin, Debt To Equity Ratio and Current Ratio and dependent variable in this research was growth incom. The data used in this research was secondary data as 55 samples with purposive sampling. The method used to analyze the relation between independent variable and dependent variable was multiple linear regression and classical assumption test. The findings of this research identified that simultaneously independent variables Return On Asset, Return On Equity, Net Profit Margin, To Equity Ratio and Current Ratio with F test, effected together to growth income significantly 0.000. While the result partially with T test, Return On Asset, Return On Equity, and Net Profit Margin to growth income with significance and positive of each was 0.029, 0,041 and 0.008. While Debt To Equity Ratio and Current Ratio to growth income with significance and negative of 0.008 and 0,001. Companies must be able to demonstrate a good performance, high growth potential, and delivered company information sufficient to investors about the company.

Suggested Citation

  • Mohd. Heikal & Muammar Khaddafi & Ainatul Ummah, 2014. "Influence Analysis of Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), Debt To Equity Ratio (DER), and current ratio (CR), Against Corporate Profit Growth In Automotive In Indo," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(12), pages 101-114, December.
    • Handle: RePEc:hur:ijarbs:v:4:y:2014:i:12:p:101-114
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    Citations

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    Cited by:

    1. Sidra Tahir & Saira Baloch, 2023. "Role of Working Capital Management in Enhancing Firm Profitability: An Empirical Study on the Manufacturing Companies of Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 5(3), pages 231-237.
    2. Zhifeng Liu & Kaixin Li & Tingting Zhang, 2023. "Information diversity and household portfolio diversification," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 3833-3845, October.
    3. Lu Qiu & Die Hu & Yu Wang, 2020. "How do firms achieve sustainability through green innovation under external pressures of environmental regulation and market turbulence?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2695-2714, September.
    4. Die Hu & Lu Qiu & Maoyan She & Yu Wang, 2021. "Sustaining the sustainable development: How do firms turn government green subsidies into financial performance through green innovation?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2271-2292, July.
    5. Kah Chon, Ooi, 2019. "Impacts Of Firm-Specific Factors And Macroeconomic Factors Against Microsoft’S Performance," MPRA Paper 97254, University Library of Munich, Germany, revised 15 Nov 2019.
    6. Cui, Yu & Khan, Sufyan Ullah & Li, Zhixue & Zhao, Minjuan, 2021. "Environmental effect, price subsidy and financial performance: Evidence from Chinese new energy enterprises," Energy Policy, Elsevier, vol. 149(C).
    7. Yana Ermawati & Muhamad Yamin Noch & Zakaria & Arfan Ikhsan & Muammar Khaddafi, 2017. "Reconstruction of Financial Performance to Manage Gap between Value Added Intellectual Coefficient (VAICTM) and Value of Company in Banking Company Listed in Indonesia Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 537-549.
    8. Putri P. R. Marditia & James Xaverius & jeff Gerardo & Rya Terassa Manihuru & Ryan Ricardo, 2022. "Arrangement model for the implementation of pledge of shares execution for a public company by private sale to create sustainable economic development," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(1), pages 398-406, January.
    9. Annathurai, Anusha, 2019. "Corporate Governance Analysis on Risk Exposure and Performance of AIA Bhd," MPRA Paper 97259, University Library of Munich, Germany, revised 27 Nov 2019.
    10. Mohammad Ali AL Hayek, 2018. "The Relationship Between Sales Revenue and Net Profit with Net Cash Flows from Operating Activities in Jordanian Industrial Joint Stock Companies," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(3), pages 149-162, July.
    11. Mariska Muller & Sun Ferreira-Schenk & John George Jansen van Rensburg & Daniel Mokatsanyane & Ruschelle Sgammini, 2022. "Tracking the Performance of Listed Shares: A Comparison Between JSE Single- and Dual-listed Shares," International Journal of Economics and Financial Issues, Econjournals, vol. 12(6), pages 145-154, November.
    12. C. N. V. Krishnan & Minghao Wu, 2022. "The Methodology Matters: What Influences Market Reaction, and Post-Issue Returns in Seasoned Equity Offerings?," JRFM, MDPI, vol. 15(10), pages 1-22, October.

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