ANALYSIS OF FINANCIAL PERFORMANCE ON THE CAPITAL STRUCTURE OF PT IMPACK PRATAMA INDUSTRI TBK FOR THE PERIOD 2015-2024

Abstract

This study aims to analyze the effect of financial performance on capital structure at Pt Impack Pratama Industri Tbk during the period 2015-2024. Financial performance is measured through profitability ratios (Return on Assets, Return on Equity, Net Profit Margin, and Gross Profit Margin) and liquidity (Current Ratio, Quick Ratio, and Cash Ratio), while capital structure is measured using Debt to Equity Ratio (DER) and Debt to Asset Ratio (DAR). This study is based on the theory of modern capital structure, namely Trade-Off Theory and Pecking Order Theory, which explains the balance between the use of debt and own capital and the order of funding preferences of the company. The research method used is a quantitative approach with multiple linear regression analysis to examine the simultaneous and partial influence between the independent and dependent variables. The Data used is secondary data obtained from the company's annual financial statements published through the official website of PT Impack Pratama Industri Tbk. The results showed that the ratio of profitability and liquidity affect the capital structure, where companies with high levels of profitability and liquidity are maintained tend to have lower debt levels. These findings indicate that Pt Impack Pratama Industri Tbk is able to manage its capital structure efficiently in accordance with the principle of balance between risk and return in modern financial management.