Abstract
The purpose of this study is to determine and analyze the effect of financial ratios on profit growth in automotive and component companies listed on the Indonesia stock exchange, with firm value acting as a moderating variable. There were 12 companies during the 2015-2020 research period. This type of research is known as causal associative research. In this study, the population consists of automotive and component companies listed on the Indonesia Stock Exchange. The census sampling method was used, so 72 research sample data were collected. Using eviews 10 for data analysis. Profitability and liquidity were found to have a significant partial effect on profit growth. Leverage and activity ratios, on the other hand, had no significant impact on profit growth in automotive and component companies listed on the Indonesian stock exchange between 2015 and 2020. In the 2015-2020 period, profitability, liquidity, and activity leverage ratios all have a significant impact on profit growth in automotive and component companies listed on the Indonesian stock exchange. Profit growth is affected by profitability, leveraged liquidity, and activity ratios.
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More From: International Journal of Social Science Research and Review
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