Analysis of Financial Ratio towards Earning Growth in Mining Companies

Abstract

This research aims to identify the influence of working capital to total asset, debt to equity ratio, total asset turnover, and net profit margin predicting the earning growth. Population of this research is the mining industry companies listing in Indonesia Stock Exchange. The writer gets 60 samples from 20 companies in period 2010 until 2012. The method that is used in collecting data is documentation method and done by taking financial data in IDX corner. The result of regression shows that variable of working capital to total asset and debt to equity ratio partially having negative but significant influence on the predicting earning growth. The variable of total asset turnover and net profit margin, partially having positive and significance influence. Simultaneously, four variables have significant influence on earning growth with the predictive capabilities of 37.2% and the remaining 62.8% is influenced by other factors that are not included in this regression model.