The Effect Of Financial Ratios On Changes In Net Profit Listed On The Indonesian Stock Exchange

Fitra Fitriyanto¹, Saibat²

Abstract

The purpose of this study was to further examine the influence of financial ratios on changes in profits in manufacturing companies listed on the Indonesia Stock Exchange during the 2015-2016 period. The ratios used were Current Ratio, Debt To Equity Ratio, Total Asset Turnover, and Net Profit Margin. With a population of 144 companies and a sample of 24 companies. The sampling technique used Purposive Sampling Technique. Data were tested using the classical assumption test and multiple linear regression analysis using SPSS. The results of this study indicate that the current ratio, debt to equity ratio, and total asset turnover do not affect changes in profits. Meanwhile, net profit margin has a positive effect on changes in profits. And simultaneously Current Ratio, Debt To Equity Ratio, Total Asset Turnover, and Net Profit Margin affect changes in profits.