THE INFLUENCE OF PROFITABILITY RATIO AND ACTIVITY RATIO ON FINANCIAL PERFORMANCE IN AUTOMOTIVE SUB-SECTOR MANUFACTURING COMPANIES AND THEIR COMPONENTS LISTED ON THE INDONESIAN STOCK EXCHANGE YEAR 2018-2022

Abstract

This research aims to examine and analyze the influence of profitability ratios and activity ratios on financial performance in automotive sub-sector manufacturing companies and their components listed on the Indonesian Stock Exchange in 2018- 2022. This research includes quantitative research. The data used in this research is in the form of annual financial reports of Automotive and Component Subsector Manufacturing companies listed on the Indonesia Stock Exchange for 2018-2022. The sampling technique uses the Purposive Sampling method. The population is 15 companies. The sample that meets the criteria is 10 companies. The analysis technique used in this research is multiple linear regression analysis with the help of the SPSS program. Based on the results of data analysis using SPSS 25, it shows that the Profitability Ratio which is proxied by ROE and ROA has a significant effect on financial performance with a significance value of ROE of 0.028 and a significance value of ROA of 0.011, the Activity Ratio which is proxied by Inventory Turnover & Total Asset Turnover has a significant effect on performance. finance with an ITO significance value of 0.013 and a TATO significance value of 0.050. Simultaneously, the Profitability Ratio and Activity Ratio variables have a significant effect on financial performance with a significance value of 0.008.