Pengaruh Current Ratio, Debt to Equity Ratio dan Return On Aset terhadap Pertumbuhan Laba pada Perusahaan Subsektor Apparel & Luxury Good yang Terdaftar di Bursa Efek Indonesia

Abstract

Profit growth is an important indicator of a company's financial performance and is frequently used by investors to evaluate future business prospects. However, fluctuations in financial ratios do not always correspond to changes in profit growth, particularly in the Apparel & Luxury Goods subsector listed on the Indonesia Stock Exchange. This study aims to examine the effects of the Current Ratio (CR), Debt-to-Equity Ratio (DER), and Return on Assets (ROA) on profit growth in companies within this subsector during the 2022–2024 period. A quantitative research design was employed using secondary data collected from annual financial reports. The sample consisted of 42 firm-year observations selected through purposive sampling. Data were analyzed using multiple linear regression after fulfilling the classical assumption tests. The findings indicate that CR, DER, and ROA do not simultaneously influence profit growth. Partially, DER has a significant negative effect on profit growth, whereas CR and ROA show no significant effect. The coefficient of determination indicates that these financial ratios explain only a small proportion of the variation in profit growth, suggesting that other factors play a more substantial role. These findings provide additional empirical evidence regarding the limited predictive ability of conventional financial ratios in explaining profit growth within the Apparel & Luxury Goods industry.