THE EFFECT OF CAPITAL STRUCTURE AND OPERATING COST EFFICIENCY ON THE PROFIT OF PT ACE HARDWARE INDONESIA TBK FROM 2015-2024
Keywords:
Debt to Equity Ratio (DER), Operating Expenses to Operating Income (BOPO), operating profit, capital structure, operating cost efficiencyAbstract
This study aims to analyze the effect of capital structure and operational cost efficiency on the business profits of PT Ace Hardware Indonesia during the period 2015 - 2024. This study is a quantitative study with a correlational descriptive research de sign. Secondary data were obtained from the annual financial reports of PT Ace Hardware Indonesia published by the Indonesia Stock Exchange. Data analysis was performed using classical assumption tests, multiple linear regression analysis, t - tests, F- tests, and the coefficient of determination (R²) with the help of SPSS version 27. Sample selection used purposive sampling, where certain criteria had to be met. The results showed that partially and simultaneously, capital structure (DER) and operating cost efficiency (BOPO) did not have a significant effect on operating profit. These findings indicate that operating profit is influenced by other factors. Thus, companies are advised to maintain a balanced capital structure and improve cost efficiency to strengthen their financial performance in the future.
