Research Article
Predicting the Profit Growth with Financial Ratio: Study at Real Estate and Property Companies listed in Indonesia Stock Exchange
@INPROCEEDINGS{10.4108/eai.26-3-2019.2290686, author={Rieke Pernamasari and Triyani Budyastuti and Lulu Sagita Putri}, title={Predicting the Profit Growth with Financial Ratio: Study at Real Estate and Property Companies listed in Indonesia Stock Exchange}, proceedings={Proceedings of the First Annual Conference of Economics, Business, and Social Science, ACEBISS 2019, 26 - 30 March, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ACEBISS}, year={2020}, month={2}, keywords={growth income financial ratio curent ratio debt to equity ratio total asset turnover net profit margin}, doi={10.4108/eai.26-3-2019.2290686} }- Rieke Pernamasari
Triyani Budyastuti
Lulu Sagita Putri
Year: 2020
Predicting the Profit Growth with Financial Ratio: Study at Real Estate and Property Companies listed in Indonesia Stock Exchange
ACEBISS
EAI
DOI: 10.4108/eai.26-3-2019.2290686
Abstract
One of the information contained in the financial statements used to determine the success or failure of a company is profit. This study aims to examine the effect of financial ratios in predicting the profit growth.The variables in this study consisted of current ratio (CR), debt to equity ratio (DER), ratio of Total Asset Turnover (TATO) activity, net profit margin ratio (NPM) and profit growth as the dependent variable.The population in this study were real estate and property companies listed on the Indonesia Stock Exchange for the period 2015 - 2017. The samples from this study were 24 companies. Analysis of this study uses a linear regression method consisting of 2 variables, namely the dependent variable and the independent variable. The results showed that Current Ratio (CR), and Debt to Equity Ratio (DER) had no effect in predicting Profit Growth, but Total Asset Turnover (TATO) and Net Profit Margin (NPM) had a positive effect in predicting profit Growth.
