THE INFLUENCE OF FINANCIAL RATIOS TOWARDS PROFIT GROWTH (AN EMPIRICAL STUDY ON MINING COMPANIES IN INDONESIA STOCK EXCHANGE 2016-2019)

Abstract

This research aims to examine and analyze the influence of financial ratios towards profit
growth. The independent variable discussed in this research was financial ratios that consist of
Debt to Equity Ratio (DER), Total Assets Turnover (TATO), Net Profit Margin (NPM), and
Current Ratio (CR), while the dependent variable was the profit growth on mining companies
listed on Indonesia Stock Exchange for the period of 2016-2019. The data examined were
secondary data obtained from the annual financial statements of each mining company through
the official website of Indonesia Stock Exchange. The data analysis was conducted through a
panel data analysis. The results showed that Total Asset Turnover, Net Profit Margin and Debt to
Equity Ratio partially performed no significant influence towards profit growth, while the
Current Ratio performed significant influence toward it.