Determination Of Financial Ratios To Profit Growth In Pharmaceutical Companies On The Jakarta Stock Exchange

Abstract

Good profit growth indicates that the company has good management that can increase the value of the company. To measure the success of an enterprise. Financial ratio analysis is used to assist business people and the government in evaluating the company's past, present financial condition and projecting results or profits obtained in the future. Ratio analysis used as a performance gauge includes Current Ratios, Debt To Equity Ratios, Return On Assets Ratios, and Return On Equity Ratios. The analysis method used is multiple linear regression panel data, while to test the regression model a classical assumption test is used. The results of this study show that the R² value obtained in this study is 0.792036 so that it  can be concluded that the ability of the independent variable to explain the dependent variable  is 79%. then it can be concluded that the independent variables consisting of: Current Ratio, Debt to Equity Ratio, Return On Assets, and Return On Equity can provide almost all the information needed for profit growth variables,  but only the variable Return On Equity affects the profit organization. This shows that the resulting regression model does not all variables can be used as an explanation of the variation of the dependent variable.