AFEBI Accounting Review
Vol 3, No 1 (2018)

THE ABILITY OF FINANCIAL RATIOS, INFLATION AND GROSS DOMESTIC PRODUCT (GDP) TO PREDICT THE GROWTH OF COMPANY PROFIT

Nurrini, Ika Wahyu (Universitas Negeri Yogyakarta)
Sukirno, Sukirno (Universitas Negeri Yogyakarta)



Article Info

Publish Date
21 Aug 2018

Abstract

This research was conducted to gather information about the influence of Current Ratio, Total Asset Turnover, Leverage Ratio, Profit Margin, Return on Asset, Inflation and Gross Domestic Product on profit growth at service companies in Indonesia Stock Exchange partially and simultaneously. The purposive sampling technique was used to collect the samples. The amount of samples in this research were the 40 service companies in the property and real estate sector listed in the Indonesia Stock Exchange in the 2014-2016 period. The classic assumption test was done before the multiple linear analysis, t test, F test and R2 were used to implement the hypothesis test. The test results showonly partially, the Return On Asset has a positive and significant effect to profit growth, while the variable of  Current Ratio, Total Asset Turnover, Leverage Ratio, Profit Margin, Inflation and Gross Domestic Product have insignificant effects to profit growth. Simultaneously, the Current Ratio variable, Total Asset Turnover, Leverage Ratio, Profit Margin, Return On Asset, Inflation and Gross Domestic Product have significant effects to profit growth.Keywords:Current Ratio, Gross Domestic Product, Inflation, Leverage Ratio, Profit Growth, Profit Margin, Return On Asset, and Total Asset Turnover

Copyrights © 2018






Journal Info

Abbrev

aar

Publisher

Subject

Economics, Econometrics & Finance

Description

AFEBI Accounting Review (AAR) is an academic journal which is published twice a year (June and December) by The Association of The Faculty of Economics and Business Indonesia. AAR is aimed as an outlet for theoretical and empirical research in the field of finance and accounting and to disseminate ...