The Influence of Profitability, Liquidity, Firm Size, Capital Structure and Efficiency on Financial Performance of Food and Beverages Sub-Sector on IDX

Abstract

This study aims to analyze the effect of profitability, liquidity, firm size, capital structure, and company efficiency on financial performance in the Food and Beverages sub-sector during the period 2019–2024. This research uses a quantitative method with a causal approach. The sampling technique used is purposive sampling. The analysis method employed is multiple linear regression, with a total sample of 138 obtained from the financial statements of companies in the Food and Beverages sub-sector listed on the Indonesia Stock Exchange during the 2019–2024 period. The study utilizes the ratios of Net Profit Margin (NPM), Current Ratio (CR), Firm Size, Debt to Equity Ratio (DER), Total Asset Turnover (TATO), and Return on Assets (ROA). The results indicate that the profitability variable (NPM) and company efficiency (TATO) have a positive and significant partial effect on financial performance (ROA). Meanwhile, the liquidity variable (CR) and firm size have a negative and significant partial effect on financial performance. Capital structure, on the other hand, does not have a partial effect on financial performance (ROA). Furthermore, all five independent variables simultaneously have a significant effect on financial performance.

Keywords: NPM, Current Ratio, Firm Size, TATO, ROA