Internal Company Factors Influencing Profitability: Analysis of Manufacturing Company in the Food and Beverage Subsector at the Indonesian Stock Exchange

Salim Siregar (), Dian Hakip Nurdiansyah, Disman Disman, Nugraha Nugraha, Gusganda Suria Manda and Wisnu Miftahul Faris
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Salim Siregar: University of Singaperbangsa Karawang
Dian Hakip Nurdiansyah: University of Singaperbangsa Karawang
Disman Disman: Universitas Pendidikan Indonesia
Nugraha Nugraha: Universitas Pendidikan Indonesia
Gusganda Suria Manda: University of Singaperbangsa Karawang
Wisnu Miftahul Faris: University of Singaperbangsa Karawang

A chapter in Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024), 2025, pp 228-240 from Springer

Abstract: Abstract The objective of this study is to examine the influence of Net Profit Margin (NPM), Debt to Equity Ratio (DER), and Asset Growth on Return on Equity (ROE) in food and beverage manufacturing companies listed on the Indonesia Stock Exchange from 2014 to 2021. This research employs a descriptive quantitative method with a purposive sampling technique, selecting 15 companies. Secondary data is obtained from financial reports, and multiple linear regression analysis is used for hypothesis testing. The results indicate that NPM and Asset Growth significantly affect ROE, whereas DER has no significant impact. These findings suggest that profitability and asset management are crucial in enhancing financial performance, while leverage does not always directly influence shareholder returns. This study contributes to corporate financial management by providing insights into strategic decision-making for improving profitability.

Keywords: Asset Growth; Debt to Equity Ratio; Net Profit Margin; Return on Equity (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-817-2_29

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DOI: 10.2991/978-94-6463-817-2_29

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