THE EFFECT OF LIQUIDITY, LEVERAGE, SOLVENCY AND SALES GROWTH ON PROFITABILITY

Abstract

The company has the main goal of maximizing the profits obtained, the maximum profit obtained by the company from the sale of goods or services offered. By utilizing profitability ratios, understand the level of financial health of a company, as well as identify potential obstacles that the company may face in the future and the factors that cause them. The objective of this research is to collect empirical evidence about how liquidity, leverage, solvency and sales growth affect profitability in food and beverage sub-sector companies listed on the Indonesia Stock Exchange (BEI) in 2019 – 2022. The sampel criteria in this research are sub-sector companies food and beverage listed on the Indonesia Stock Exchange (BEI) for the 2019-2022 period, food and beverage sub-sector companies that earned positive profits during the 2019-2022 period, as well as food and beverage sub-sector companies that published financial reports consecutively during the period 2019-2022. The research result can be concluded that partially liquidity has a positive affect on profitability (ROA) and liquidity does not have a positive affect on profitability (ROE). Leverage does not have a negative affect on profitability (ROA & ROE). Solvency does not have a negative affect on profitability (ROA & ROE). Sales Growth does not have a positive affect on profitability (ROA & ROE).