The Effect of Liquidity,Activity, and Solvency on Profitability in PT. Indofood Sukses Makmur Tbk

Abstract

The purpose of this study was to determine the effect of liquidity, activity and solvency on profitability at PT. Indofood Sukses Makmur Tbk., in the period 2016-2020 period either simultaneously and partially. The problem discussed in this thesis is the decline in profits, which are fluctuating every year. The data analysis technique in this research is using quantitative menthods and secondary data. The population in this study is the food and baverage industry for the 2016-2020 and the sample taken is PT. Indofood Sukses Makmur Tbk. 2016-2020. The determination of samples in this study was purposive sampling. The analysis tool used is the multiple linear regression analysis method. Based on the results of statistical analysis, the following results were obtained: the results of the t-test showed that financial factors: (1) Liquidity has a negative and insignificant effect on Profitability. (2) Activities have a positive and insignificant effect on profitability. (3) Solvency has a positive and insignificant effect on profitability. The results of the F test show that the current ratio has a negative effect, inventory turn over, and debt to equity ratio have a positive and simultaneously in significant effect on return on assets.