The Effect of Debt Ratio by DJP and Liquidity Policy on Profitability in Consumer Goods Companies Listed on The Indonesia Stock Exchange

Abstract

The purpose of this research is to examine and analyze the effect of the debt ratio policy and liquidity ratio on profitability in consumer goods companies listed on the Indonesia Stock Exchange for the period 2019-2022. The research population is all consumer goods companies listed on the IDX for the period 2019 – 2022, namely 41 companies. The sampling method in this study used purposive sampling so that a sample of 29 companies was obtained. Data analysis in this study used multiple regression by utilizing the SPSS statistical program version 24. The results showed that the debt ratio policy had a negative and significant effect on profitability in consumer goods companies listed on the Indonesia Stock Exchange in the period 2019-2022. Then liquidity was found to have no effect on the profitability of consumer goods companies listed on the Indonesia Stock Exchange for the period 2019-2022