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Growing Science » Accounting » Determinant of profitability: Evidence from trading, service and investment companies in Indonesia

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Accounting
ISSN 2369-7407 (Online) - ISSN 2369-7393 (Print)
Quarterly Publication
Volume 6 Issue 5 pp. 787-794, 2020

Determinant of profitability: Evidence from trading, service and investment companies in Indonesia Pages 787-794 Right click to download the paper Download PDF

Authors: Citra Shahnia, Endah Dewi Purnamasari, Luqman Hakim, Endri Endri

📋 Author Affiliations:
C. Shahnia¹, E. Endri¹, E.D. Purnamasari², L. Hakim³
¹ Universitas Mercu Buana, Jakarta, Indonesia
² Universitas Indo Global Mandiri, Palembang, Sumatera Selatan, Indonesia
³ Universitas Muhammadiyah Jakarta, Indonesia
doi 10.5267/j.ac.2020.6.004
Crossmark
36 Source: Scopus
Crossref 22 Source: CrossRef

🔑 Keywords: Profitability, Return on Assets, Current Ratio, Debt to Assets Ratio, Net Profit Margin, Return on Equity, Total Asset Turnover

Abstract: This study aims to determine and analyze the effect of Current Ratio (CR), Debt to Assets Ratio (DAR), Net Profit Margin (NPM), Return On Equity (ROE) and Total Asset Turnover (TATO) on Profitability (ROA) in the trading, service and investment subsector companies on the Indonesia Stock Exchange (IDX) over the period 2014- 2018. The data used is panel data with 6 companies for 5 years obtained from the Annual Report published on the IDX website. The results of this study indicate that CR and DAR partially negatively affected ROA, and ROE had a positive effect on ROA, while NPM and TATO had no effect on ROA. Overall testing shows that all financial factors had a significant effect and contribute to explain changes in profitability of 89.6 percent.


How to cite this paper
APA: Shahnia, C., Purnamasari, E., Hakim, L & Endri, E. (2020). Determinant of profitability: Evidence from trading, service and investment companies in Indonesia. Accounting, 6(5), 787-794.
Chicago/Turabian: Shahnia, C., Purnamasari, E., Hakim, L & Endri, E. 2020. "Determinant of profitability: Evidence from trading, service and investment companies in Indonesia." Accounting 6, no. 5 (2020): 787-794.
AMA: Shahnia, C., Purnamasari, E., Hakim, L & Endri, E. Determinant of profitability: Evidence from trading, service and investment companies in Indonesia. Accounting. 2020;6(5):787-794.

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Journal: Accounting | Year: 2020 | Volume: 6 | Issue: 5 | Views: 4046 | Reviews: 0

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