THE EFFECT OF LEVERAGE, REVENUE GROWTH, AND TOTAL ASSET TURNOVER ON PROFITABILITY OF LISTED COMPANIES IN THE BASIC MATERIALS SECTOR IN INDONESIAN STOCK EXCHANGE PERIOD 2017-2022
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Abstract
Penelitian ini bertujuan untuk mengetahui pengaruh leverage, pertumbuhan penjualan, dan total aset turnover (TATO) terhadap profitabilitas pada perusahaan tercatat sektor bahan baku (basic materials) di Bursa Efek Indonesia (BEI). Enam puluh tiga (63) perusahaan sektor bahan baku selama kurun waktu 6 tahun dari tahun 2017 hingga 2022 diambil sebagai sampel secara purposive sampling. Penelitian menemukan bahwa terdapat hubungan positif dan signifikan antara pertumbuhan penjualan dan TATO terhadap profitabilitas. Namun, terdapat hubungan negatif namun tidak signifikan antara leverage dan profitabilitas. Penelitian ini memperlihatkan hubungan variabel-variabel yang ada dengan pecking order theory. Lebih lanjut, penelitian ini juga menekankan pentingnya manajer di sektor bahan baku untuk mengelola aset mereka serta menyusun strategi penjualan untuk meningkatkan peluang kelangsungan hidup perusahaan di masa depan.
This study aims to determine the effect of leverage, revenue growth, and total asset turnover (TATO) on profitability of listed companies in the basic materials sector in Indonesian Stock Exchange (IDX). Sixty-three (63) firms from the basic materials sector over a period of 6 years from 2017 to 2022 were taken as samples by purposive sampling. The study found that there is a positive and significant relationship between revenue growth and TATO on profitability. However, there is a negative but non-significant relationship between leverage and profitability. This study displays the indirect relations between the variables to the pecking order theory. Furthermore, this study also pushes the importance for managers in the basic materials sector to manage their assets as well as strategizing sales to increase its chances of survival in the future.
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