THE INFLUENCE OF ACTIVITY RATIOS ON PROFITABILITY LEVELS AT PT JAPFA COMFEED INDONESIA TBK FOR THE PERIOD 2015-2024

Abstract

This study aims to determine the influence of activity ratios on profitability levels at PT Japfa Comfeed Indonesia Tbk during the period 2015–2024. The activity ratios analyzed include Cash Turn Over (CTO), Receivable Turn Over (RTO), Inventory Turn Over (ITO), Fixed Asset Turn Over (FATO), and Total Asset Turn Over (TATO). Meanwhile, the profitability ratios used as indicators of the company's financial performance consist of Gross Profit Margin (GPM), Operating Profit Margin (OPM), Net Profit Margin (NPM), Return on Assets (ROA), Return on Equity (ROE), Earnings per Share (EPS), and Dividend per Share (DPS). The research method used is a quantitative method with a causality approach to test the relationship between asset management efficiency and profitability levels. Based on the analysis results, the activity ratios of PT Japfa Comfeed Indonesia Tbk show a fluctuating downward trend, which impacts a decrease in the company's profitability ratios. Nevertheless, in 2024, the company showed significant improvement across all profitability indicators. This indicates that efficient operational activity management has a positive impact on increasing company profitability.