The Influence of Liquidity Ratio, Solvency Ratio and Activity Ratio on Profitability in Food and Beverage Companies on the IDX in 2017-2020

Nur Rochman Wicaksono ¹, Sukesi^2*, Saibat³

Abstract

The purpose of this study is to understand and analyze the factors that influence the number of LQ45 companies that do not pay dividends in 2017. The independent variables used are Debt to Equity Ratio, Assets Growth and Return On Assets and the dependent variable uses Dividend Payout Ratio. The research method used is Associative with a quantitative approach. The number of samples is 13 companies using the purposive sampling method. The analysis technique uses Multiple Linear Regression, where data is obtained through documentation and the data used is secondary data obtained from the Indonesia Stock Exchange through the internet site www.idx.co.id. The results of the study indicate that (1) simultaneously the variables Debt to Equity Ratio, Assets Growth and Return On Assets have an effect on the Dividend Payout Ratio. (2) Partially, only the Debt to Equity Ratio variable does not affect the Dividend Payout Ratio, (3) the Assets Growth variable has a significant negative effect on the Dividend Payout Ratio and (4) the Return On Assets variable has a significant positive effect on the Dividend Payout Ratio. (5) The Adjusted R Square value obtained is 0.273. These results indicate that the ability of the influence of Debt to Equity Ratio, Assets Growth and Return On Assets on Dividend Policy is only 27.3% while the remaining 72.7% is influenced by other factors not included in the regression model that are not included in the regression model.