Profit Growth: Impact of Net Profit Margin, Gross Profit Margin and Total Assets Turnover

Talitha Nathaniela Nariswari and Nugi Mohammad Nugraha
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Talitha Nathaniela Nariswari: Faculty of Economics and Business, Widyatama University, Bandung, Indonesia
Nugi Mohammad Nugraha: Faculty of Economics and Business, Widyatama University, Bandung, Indonesia

International Journal of Finance & Banking Studies, 2020, vol. 9, issue 4, 87-96

Abstract: As an industry that has an important role for other industrial sectors, the plastic and packaging industry is the supply chain for consumer products. Behind the high industrial growth and the potential is still large, there are problems with plastic waste, consumption power, and changes in people's lifestyles that can affect the growth of the plastic and packaging industry. This study aims to determine how much impact the NPM (Net Profit Margin), GPM (Gross Profit Margin), TAT (Total Assets Turnover) on Profit Growth in the plastic and packaging industry sub-sector companies listed in IDX (Indonesia Stock Exchange) for the period 2014 to 2018. The method used in this study is a quantitative descriptive. The sampling technique used was purposive sampling in order to obtain a sample of 11 companies from a population of 12 companies. In the study the method of data analysis used the multiple linear regressionanalysis techniques by processing data using Eviews 8, because the data is not normally distributed, it uses the log transformation method. The results showed that simultaneously NPM (Net Profit Margin), GPM (Gross Profit Margin), TAT (Total Assets Turnover) had a significant effect on profit growth. And partially NPM (Net Profit Margin) has a significant effect on profit growth, while GPM (Gross Profit Margin) and TAT (Total Assets Turnover) have no significant effect on profit growth.

Keywords: Net Profit Margin; Gross Profit Margin; Total Assets Turnover; Profit Growth (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (8)

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