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The Effect of Financial Performance on the Profitability of Food and Beverage Companies in Indonesia

Author

Listed:
  • Herdiyana
  • Adi Sumarno
  • Endri Endri

Abstract

This study aims to determine the effect of the company's financial performance which is calculated from total assets, net capital and total asset turnover on the profitability of the food and beverage sub-sector companies listed on the Indonesian Eefek Exchange in the period 2015-2018. The method is done by collecting secondary data taken from the company's financial statements on the IDX. The research test tool used descriptive statistical analysis and the inference of the multiple linear regression method. The results showed that total assets, net working capital and total assets turnover independently had no significant and significant effect on profitability as well as join contribution also had no effect but could make a small contribution to the profitability of food and beverage sub-sector companies listed in IDX.

Suggested Citation

  • Herdiyana & Adi Sumarno & Endri Endri, 2021. "The Effect of Financial Performance on the Profitability of Food and Beverage Companies in Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(1), pages 30-39, January.
    • Handle: RePEc:jfr:ijfr11:v:12:y:2021:i:1:p:30-39
    DOI: 10.5430/ijfr.v12n1p30
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    References listed on IDEAS

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    1. Cecilia Ricci & Nino Vito, 2000. "International working capital practices in the UK," European Financial Management, European Financial Management Association, vol. 6(1), pages 69-84, March.
    2. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3‐4), pages 573-588, April.
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