THE INFLUENCE OF OPERATING CASH FLOW AND FINANCIAL PERFORMANCE ON PROFIT GROWTH WITH COMPANY SIZE AS A MODERATOR

Abstract

Companies in the non-cyclical consumer sector need to respond quickly to adapt to changes in market dynamics. In this case, the main objective of this research is to determine the relationship between operating cash flow and financial performance on profit growth with company size as a moderator in non-cyclical consumer sector companies for the data period from 2019 to 2023. The measurement of financial performance used is the net profit margin. The results of this study show a coefficient of determination value of 21%, meaning that operating cash flow and financial performance can only explain 21% of profit growth. Based on the results of the t-statistic test, the probability value of operating cash flow is 0.4299, meaning that operating cash flow does not affect profit growth. The probability value of the net profit margin is 0.0000, meaning that the net profit margin does not affect profit growth. Meanwhile, the MRA test results show that the probability value of operating cash flow moderated by company size is 0.0040, meaning that company size can moderate operating cash flow towards profit growth. The probability value of net profit margin moderated by company size is 0.1726, meaning that company size cannot moderate net profit margin towards profit growth.