Effect of Liquidity and Leverage on Profitability of Agricultural Sector Companies Listed on the IDX

Bunga Anisya Sunarta, Dedi Kurniawan

2021

Abstract

This research aims to see how liquidity and leverage affect profitability in agricultural sector companies in Indonesia. Liquidity is measured by Current Ratio (CR), leverage as measured by Debt to Equity Ratio (DER), and company profitability is measured by Return on Assets (ROA) and Return on Equity (ROE). This study uses secondary data with data collection techniques using financial statements of agricultural sector companies listed on the Indonesia Stock Exchange from 2015-2019. Purposive sampling was used as a methodology in this study, and 15 companies match with the criteria. The test method in this study uses panel data regression analysis with Eviews 9. This study found that the CR has an insignificant impact on ROA and ROE in the agriculture sector. This study also found that the DER has an insignificant effect on ROA but significantly negatively impacts ROE in the agriculture sector. Simultaneously, CR and DER have an impact on ROA and ROE

Paper Citation

in Harvard Style

Anisya Sunarta B. and Kurniawan D. (2021). Effect of Liquidity and Leverage on Profitability of Agricultural Sector Companies Listed on the IDX. In Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS, ISBN 978-989-758-605-7, pages 117-125. DOI: 10.5220/0010861600003255

in Bibtex Style

@conference{icaess21,
author={Bunga Anisya Sunarta and Dedi Kurniawan},
title={Effect of Liquidity and Leverage on Profitability of Agricultural Sector Companies Listed on the IDX},
booktitle={Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,},
year={2021},
pages={117-125},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010861600003255},
isbn={978-989-758-605-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,
TI - Effect of Liquidity and Leverage on Profitability of Agricultural Sector Companies Listed on the IDX
SN - 978-989-758-605-7
AU - Anisya Sunarta B.
AU - Kurniawan D.
PY - 2021
SP - 117
EP - 125
DO - 10.5220/0010861600003255