Abstract
This study aims to find out the effect of debt policy and free cash flow on profitability in the food and beverage sector of the manufacturing companies listed in the Indonesia Stock Exchange for the period of 2014-2019. The sample selection was carried out by purposive sampling technique using certain criteria. The analysis technique used is multiple regression analysis and hypothesis testing using the partial t test, simultaneous F test with a level of significance of 5% and the coefficient of determination using IBM SPSS Statistics version 23 software. The result of this study showed that DERÂ has a significant negative effect and FCF has a significant positive effect on ROE of food and beverage sector manufacturing companies in IDX for the 2014-2019 period at a level of significance of less than 5%. Meanwhile, simultaneously (DER and FCF) are proven to have a significant effect on the ROE of manufacturing companies in the food and beverage sector in IDX at the level of significance of 5% of 0.006. The predictive ability of these two variables on ROE is 28.0% as shown by the amount of the adjusted R square of 28.0%, while the remaining 72.0% is influenced by other factors that are not included in the research model
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