The Effect of Current Ratio, Return on Assets, Total Asset Turnover and Sales Growth on Capital Structure in Manufacturing Company

Purba, Mohd. Nawi; Sinurat, Erika Kristiany Br; Djailani, Ahmad; Farera, Winda

doi:10.23887/ijssb.v4i3.27958

Cited by 13 publications

(15 citation statements)

References 13 publications

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“…For every 1 unit increase in liquidity, debt decreases by 0.054 units. The effect of the negative current ratio (CR) on the capital structure (CS) is in line with the results of research from Said & Jusmansyah (2019) , Purba et al (2020) and Hidayat et al (2021) . The results of this study are different from those of Hertina et al (2022) who found that the current ratio had no effect on the capital structure.…”

Section: Regression Model Testsupporting

confidence: 86%

Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

Suharna

Kurniasih

2022

AIJB

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This paper analyzes the impact of liquidity and activity on profitability with capital structure as a mediating variable. Return on assets (ROA) is the company's ability to generate profits in a certain period and develop dynamically that changes from time to time, depending on the variables that affect it as a whole, type of business, or company. This study contributes to the literature by investigating the factors that affect the profitability (ROA) of companies indexed by SRI KEHATI. This study aims to identify the determinants of company profitability either directly or through the role of mediating variables. The analysis used is panel data regression. The selected model is the fixed effect model (FEM) and uses path analysis and Sobel test. The results show that the current ratio has a direct effect on capital structure and capital structure has a direct effect on ROA. On the other hand, the current ratio and working capital turnover have no direct effect on ROA and working capital turnover does not directly affect the capital structure. The results of the path analysis prove that the capital structure is able to mediate the effect of the current ratio on ROA.

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Section: Regression Model Testsupporting

confidence: 86%

Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

Suharna

Kurniasih

2022

AIJB

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“…The impact of the total turnover of negative assets means the company's sales performance maintains its earnings as retained earnings and uses more external funds as capital. Purba et al (2020) that the total asset turnover partially does not affect the capital structure. When creditors provide long-term loans, creditors do not only see the asset rotation side but many aspects are considered.…”

Section: The Effect Of Activity On Capital Structurementioning

confidence: 95%

“…The solvency factors of short-term debt, average loan interest rates, and the structure of tangible assets have nothing to do with capital structure. (Purba et al, 2020) showed that the current ratio had a significant negative effect on capital structure.…”

Section: Graphic 1 Average Firm Size Activity (Tato) Profitability (R...mentioning

confidence: 99%

Role of Investment Opportunity Set (IOS) in Moderating the Influence of Company Size, Activity, and Profitability on Capital Structure in Multi-Industry Sector Companies for the Period 2015-2019

Nainggolan

Susanti

Azwar

2022

OJSMA

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Growing business competition expects companies to pay more attention to ensuring capital accessibility. Fulfillment of capital needs can be obtained both internally and externally from the company. The capital structure is important for every company because it directly affects the financial position of the company, therefore the financial manager must understand the factors that affect the capital structure to maximize the prosperity of the company's shareholders. The purpose of this research is to analyze and explain the influence of firm size, activity, and profitability on capital structure moderated by investment opportunity set in multi-industry sector companies. The population in this research is a multi-industry sector company listed on the Indonesia Stock Exchange, with a research period of 2015 to 2019. The selection of samples in this research used the purposive sampling method. The data analysis techniques used in this research are descriptive statistical analysis, classical assumption test, hypothesis test, and residual test for regression moderation analysis on SPSS. The results of this study showed that firm size and activity had a positive and significant effect, while profitability had a significant effect on the capital structure, Investment opportunity sets (IOS) play a role in moderating the influence of firm size, activity, and profitability on capital structures. The practical implications on this study, for investors who want to invest in the company, can consider the magnitude of the investment opportunites that the company has. Companies that have high investment opportunities it means companies have the opportunity to grow which has an impact on investors’ profits in the future. Companies with high market capitalization are considered good by investors because they can provide good stock returns through high stock prices. For companies, it helps managers in determining optimal capital structure policies in maximizing the company’s profit and creating well-being for investors.

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“…Hal tersebut dikarenakan perusahaan dapat menurunkan harga penjualan produk agar dapat bersaing dengan pasar sehingga walaupun penjualan meningkat namun laba tidak selalu meningkat bahkan bisa terjadi penurunan laba. Penelitian ini sejalan dengan penelitian yang dilakukan oleh Purba et al, (2020), bahwa pertumbuhan penjualan tidak berpengaruh terhadap struktur modal.…”

Section: Pengaruh Pertumbuhan Penjualan Terhadap Struktur Modalunclassified

Faktor penentu struktur modal pada perusahaan manufaktur sektor industri barang konsumsi

Nurdiakusuma

Chomsatu

Suhendro

2022

AKUNTABEL: Jurnal Ekonomi dan Keuangan

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AbstrakPerusahaan dengan pendanaan yang tinggi mempengaruhi modal dan utang. Struktur modal sangat penting untuk keberlangsungan sebuah perusahaan. Tujuan dari penelitian ini untuk menganalisis faktor yang mempengaruhi struktur modal sebuah perusahaan. Pengambilan sampel dalam penelitian ini menggunakan purposive sampling. Perusahaan yang dijadikan sampel penelitian ini 34 perusahaan yang sudah memenuhi kriteria pengambilan sampel. Teknik analisis data menggunkan analisis linier berganda. Hasil penelitian ini menunjukkan bahwa profitabilitas berpengaruh terhadap struktur modal. Sedangkan likuiditas, struktur aset, ukuran perusahaan dan pertumbuhan penjualan tidak berpengaruh terhadap struktur modal. Kata kunci: Struktur modal; profitabilitas; likuiditas; struktur aset; ukuran perusahaan; pertumbuhan penjualan Capital structure determining factors in manufacturing companies in the consumer goods industry sector

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The Effect of Current Ratio, Return on Assets, Total Asset Turnover and Sales Growth on Capital Structure in Manufacturing Company

Cited by 13 publications

References 13 publications

Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

Role of Investment Opportunity Set (IOS) in Moderating the Influence of Company Size, Activity, and Profitability on Capital Structure in Multi-Industry Sector Companies for the Period 2015-2019

Faktor penentu struktur modal pada perusahaan manufaktur sektor industri barang konsumsi

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