Analysis Of Capital Structure And Sales Growth On Financial Performance(A Study of Manufacturing Companies Listed on the Indonesia Stock Exchange in 2024)
DOI:
https://doi.org/10.29407/20wsjx25Abstract
Research aim : The aim of this study is to examine how the money a company has and how fast it is selling its products affect the financial performance of manufacturing firms that are listed on the Indonesia Stock Exchange.
Design/Methode/Approach : This study employs a quantitative methodology, using multiple linear regression analysis as its primary analytical technique. The study relies on secondary data sources, specifically derived from corporate financial statements and published annual reports. The study incorporates the debt to equity ratio to represent the capital structure, utilizes sales growth as an indicator of the expansion in sales, and employs return on assets a stand in for evaluating financial results.
Research Finding : The empirical result indicate that capital structure does not exert a statistically significant ifluence on financial performance. In contrast, sales growth demonstrates a positive and significant effect. These outocomes imply that an increase in sales enhances the firm’s capacity to generate higher levels of profitability.
Theoretical contribution/Originality : This study makes a theoretical contribution by reinforcing the role of sales growth in financial performance.
Practitionel/Policy implication : In practical terms, the findings of this study can serve as a basis for management and investors in their decision-making.
Research limitation : A limitation of the present study is its reliance on a restricted set of variables; accordingly, subsequent research is encouraged to incorporate a broader range of variables to enhance the comprehensiveness of analysis.
Keywords : Capital Structure, Sales Growth, Financial Performance, Manufacturing Companies
Keywords:
Capital Structure, , Sales Growth, Financial Performance, Manufacturing CompaniesDownloads
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