Nurhayati Nurhayati

Fakultas Ekonomi dan Bisnis Universitas Jember

Anis Iftitah Hidayati

Fakultas Ekonomi dan Bisnis Universitas Jember

Elok Sri Utami

Fakultas Ekonomi dan Bisnis Universitas Jember

DOI: https://doi.org/10.19184/bisma.v14i3.16171

ABSTRACT 

This study aims to analyze the effect of the current ratio (as a measure of the liquidity ratio), debt ratio (as a measure of the solvency ratio), total asset turnover (as a measure of activity ratio), gross profit margin, and return on assets (as a measure of the ratio. profitability) on the profit growth of mining sector companies. The sample consisted of 37 mining sector companies listed on the IDX during the 2015-2018 period taken by the purposive sampling method. The data analysis method used is multiple linear regression analysis. The study results indicate that the current ratio, debt ratio, total asset turnover, and return on assets significantly affect profit growth. Meanwhile, the gross profit margin variable does not affect profit growth. These results inform that the current ratio, debt ratio, total asset turnover, and return on assets can be used to predict the mining companies' future profit growth. Meanwhile, the gross profit margin cannot be used as a predictor of profit growth.

Keywords: current ratio, debt ratio, gross profit margin, growth of profit, return on asset, total asset turnover