THE INFLUENCE OF LIQUIDITY, LEVERAGE, AND ACTIVITY RATIOS ON PROFIT GROWTH OF CONSUMER GOODS INDUSTRIES LISTED IN THE INDONESIAN STOCK EXCHANGE

Abstract

The purpose of this study was to analyze the influence of liquidity, leverage, and activity ratios on profit growth of consumer goods industries listed in the Indonesian Stock Exchange (IDX) 2009 – 2012. Samples were selected by purposive sampling method. From 41 companies, only 20 companies were selected as the sample for this study. Analytical tool used was multiple regression analysis. Results show that current ratio had positive effect on profit growth, debt equity ratio had negative effect on profit growth, and inventory net working capital had no effect on profit growth.
Keywords: liquidity, leverage, activity ratio, profit growth.