Analysis of the Factors Affecting Profitability in Trade, Service, and Investment Companies Listed on the Indonesia Stock Exchange in 2023–2024

Abstract

This study aims to examine the effect of capital structure, liquidity, cash turnover and sales growth on profitability in trading, service and investment companies listed on the Indonesia Stock Exchange in 2018-2020. This type of research is quantitative. The population in this study are trading, service and investment companies listed on the IDX in 2018-2020. The sample in this study used purposive sampling method and obtained 20 trading, service and investment companies that match the predetermined criteria. The data analysis technique used is multiple linear regression analysis using the SPSS 22.0 program. The results of this study indicate that the partial hypothesis calculation of the capital structure variable has a significant negative effect and sales growth has a significant positive effect on the profitability of trading, service and investment companies. Liquidity and cash turnover variables have no effect on profitability in trading, service and investment companies. The results of the research simultaneously that the variables of capital structure, liquidity, cash turnover and sales growth have a significant effect on profitability. From the results of this study, the coefficient of determination (R2) with a value of 0.245 means that 24.5% disclosure is explained by variables between capital structure, liquidity, cash turnover and sales growth, while the remaining 75.5% is explained by other variables outside the model.