Accounting Studies and Tax Journal
Vol. 1 No. 1 (2024): Accounting Studies and Tax Journal (COUNT)

The Effect of Financial Leverage on Profitability in the Food and Beverage Industry (2017-2021)

Irwan Moridu (Universitas Muhammadiyah Luwuk)



Article Info

Publish Date
28 Jan 2024

Abstract

This study aims to investigate the effect of financial leverage, that's measured through the Debt to Asset Ratio (DAR) and Debt to equity Ratio (DER), on return on assets (ROA) in food and beverage sector companies indexed at the Indonesia stock change (BEI). at some stage in the 2017-2021 period. Financial report records from 14 corporations selected the usage of the purposive sampling technique was analyzed via a couple of linear regression. The studies results show that the DAR ratio does not have an extensive effect on ROA, while the DER ratio has a giant high quality that has an effect on ROA. This research presents critical perception into capital structure management and its effect on organisation financial performance amidst the dynamics of the food and beverage industry.

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Journal Info

Abbrev

count

Publisher

Subject

Economics, Econometrics & Finance

Description

Accounting Studies and Tax Journal (COUNT) is reviewed covers theoretical and applied research in the field of Accounting and Tax. As an information and communication media for practitioners, researchers and academics who are interested in the field of Accounting (Finance, Bussiness, Auditing and ...