THE EFFECT OF TATO AND NPM ON PROFIT GROWTH AT PT. GAJAH TUNGGAL TBK FOR THE PERIOD 2015-2024

Abstract

This study aims to analyze the effect of Total Asset Turnover (TATO) and Net Profit Margin (NPM) on profit growth at PT. Gajah Tunggal Tbk for the 2015–2024 period. This study uses a quantitative approach with the type of associative research and secondary data sources obtained from the company's annual financial statements published through the official website of the Indonesia Stock Exchange (IDX) and the company's official website. The data analysis methods used include classical assumption tests, multiple linear regression analysis, partial tests (t test), simultaneous tests (F tests), and determination coefficients to test the influence of each independent variable on the dependent variable. The results showed that partially TATO and NPM had no significant effect on profit growth, with a significance value of TATO of 0.397 and NPM of 0.613. Simultaneously, the two variables also had no significant effect on profit growth with a significance value of 0.512 (> 0.05). This shows that the efficiency of asset use and the level of profit margin have not been able to directly increase the company's profit growth. Other factors such as management strategies, market conditions, as well as cost and investment policies are suspected to have influenced the results of the research. In conclusion, the profit growth of PT. Gajah Tunggal Tbk is not only determined by the ratio of activity and profitability, but also by other internal and external factors that need to be the attention of management in an effort to improve the company's financial performance.