Abstract

Introduction/Main Objectives: To determine the influence of Liquidity factors and Activity Ratios on Capital Structure and Profitability in Property and Real Estate sub-sector companies listed on the Indonesian Stock Exchange (BEI). Background Problem: The hampered growth in residential property sales is caused by several factors, including rising prices of building materials, licensing/bureaucratic problems, high proportion of down payments in KPR applications and taxation.. Novelty: Conducting research with different data and different sectors with profitability as an intervening variable. Research Method: sing descriptive research with a quantitative approach and using secondary data. Sampling used purposive sampling. The analysis method is path (Path Analysis) using SPSS 25. Findings/Results: Partially has a negative effect on Capital Structure, Activity Ratios have a positive and significant effect on Capital Structure, Profitability has a negative effect on Structure. Capital and profitability can mediate the Liquidity Ratio to Capital Structure. Conclusion: Companies should be able to manage their long-term debt to fund the production process in order to gain profits and the company is more efficient in utilizing its capital.

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