The Effect of Liquidity Ratio and Activity Ratio on Profit Growth with Company Size, Leverage, and Return on Assets as Control Variables in Coal Mining Companies Listed on the Indonesia Stock Exchange

Abstract

This study aims to analyze the effect of the liquidity ratio (current ratio) and activity ratio (total asset turnover) on profit growth with firm size, leverage, and return on assets as control variables. The population in this study are mining companies listed on the Indonesia Stock Exchange for the 2015-2019 period. The data used in this study is the financial statements of mining companies listed on the Indonesia Stock Exchange. The analytical method used is the quantitative method, while the analytical technique used is panel data linear regression, and partial hypothesis testing using t-test. The results showed that the results of the F test on the variable current ratio (CR) and total asset turnover had a significant positive effect on profit growth. The results of the t-test indicate that the current ratio (CR) and total asset turnover have a significant positive effect on profit growth. This study supports the results of research conducted by Suyono (2020) which states that the liquidity ratio (current ratio) has a significant effect on profit growth.