The Effect Of Current Ratio And Debt To Equitity Ratio On The Profitability Of Manufacturing Companies On The Indonesia Stock Exchange
Abstract
The objectives in this study are: 1) To know the effect of current ratio on profitability. 2) To know the effect of debt to equitity ratio on profitability. 3) To determine the effect of current ratio and debt to equitity ratio on profitability.The research method used is quantitative, in this study, verifiative research method is used to test the effect of current ratio and debt to equitity ratio on the profitability of manufacturing companies on the Indonesia Stock Exchange (IDX) period 2014–2018. The population in this study is a manufacturing company on the Indonesia Stock Exchange (IDX) period 2014-2018. The selection of samples is selected purposive sampling from all manufacturing companies listed on the Indonesia Stock Exchange (IDX) with the aim of obtaining a representative sample based on the specified criteria. The results of this study show that: 1) Current ratio affects and is significant to profitability. 2) Debt to equitity ratio affects and is significant to profitability. 3) Current ratio and debt to equitity ratio are jointly influential and significant to profitability.
Keywords: Current ratio, Debt to equitity ratio, Profitability
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