International Journal of Applied Finance and Business Studies
Vol. 11 No. 4 (2024): March: Applied Finance and Business Studies

Current ratio, return on assets and company size to capital structure in manufacturing companies in the food and beverage subsector

Niken Ayu Oktaviani (Universitas Primagraha Serang, Indonesia)
Nurhayati Nurhayati (Universitas Primagraha Serang, Indonesia)
Rifani Diah Safitri (Universitas Primagraha Serang, Indonesia)
Didit Haryadi (Universitas Primagraha Serang, Indonesia)
Wahyudi Wahyudi (Universitas Primagraha Serang, Indonesia)



Article Info

Publish Date
23 Jan 2024

Abstract

This study investigates the interaction between the current ratio, return on assets, company size and capital structure in Indonesia's food and beverage sector. The goal is to gain insight into how these factors interact and affect the overall value of a company in a particular region and industry. This analysis uses quantitative methods based on financial data and relevant metrics for a sample of 15 food and beverage sector companies operating in Indonesia. This study examines the relationship between the current ratio, return on assets, and company size to capital structure through statistical analysis and linear regression modelling techniques with SPSS version 26. The results showed that the current ratio did not significantly affect the capital structure. Return on assets does not have a significant effect on the capital structure. Then, the size of the company has a significant influence on the capital structure. The current ratio, return on set, and company size affect the capital structure simultaneously. The findings contribute to the existing literature on company valuations by providing empirical evidence specific to the food and beverage sector. The research has implications for policymakers, investors, and managers, as it offers valuable insights into the factors driving shaping capital structures in the industry, helping stakeholders make decisions and strategies to improve performance and competitiveness. Provide benefits in the context of financial management

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Journal Info

Abbrev

ijafibs

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

International Journal of Applied Finance and Business Studies is published with both online and print versions devoted to provide the publication of research finding in finance and business research studies. Objectives The main goal of ijafibs is to present outstanding, high quality research ...