THE EFFECT OF CURRENT RATIO AND DEBT TO EQUITY RATIO ON NET PROFIT MARGIN (EMPIRICAL STUDY ON COMPANIES IN THE PLASTICS AND PACKAGING SUB-SECTOR FOR THE PERIOD 2021-2023 LISTED ON THE IDX)
Main Article Content
Asya Desva Fitrilia
Afrizal Nilwan
This study aims to analyze the effect of Current Ratio (CR) and Debt to Equity Ratio (DER) on Net Profit Margin (NPM) in plastic and packaging sub-sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021-2023 period. This study uses the multiple linear regression method to test the relationship between independent variables (CR and DER) and dependent variables (NPM). The data used is the annual financial statements of companies listed on the IDX. The results show that the Current Ratio has a significant positive influence on Net Profit Margin, which shows that companies with higher liquidity tend to have better profitability. In contrast, the Debt to Equity Ratio has a significant negative effect on the Net Profit Margin, which indicates that the higher the DER, the lower the company's profitability due to the greater interest expense. These findings provide insights for company management in managing liquidity and capital structure to increase profitability.
Amelia, R., & Gulo, N. (2021). Pengaruh Debt to Assets Ratio, Debt to Equity Ratio terhadap Net Profit Margin Pada Perusahaan Industri Makanan Dan Minuman Yang Terdaftar Di Bei 2016 – 2019. Jurnal Manajemen Retail Indonesia, 2(2), 115–124.
Anisa, S. P., & Priyanto, A. A. (2022). Pengaruh CR dan DER Terhadap RoA Pada Pt. Selamat Sempurna Tbk Periode 2010-2019. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 59.
Bosse, D. A., Harrison, J. S., Pollack, J. M., & Schrempf-Stirling, J. (2023). Entrepreneurial Opportunities as Responsibility. Entrepreneurship Theory And Practice, 47(1), 3–16.
Chen, V. Z., Duran, P., Sauerwald, S., Hitt, M. A., & Van Essen, M. (2023). Multistakeholder Agency: Stakeholder Benefit Alignment and National Institutional Contexts. Journal Of Management, 49(2), 839–865.
Dmytriyev, S. D., Freeman, R. E., & Hörisch, J. (2021). The Relationship Between Stakeholder Theory and Corporate Social Responsibility: Differences, Similarities, and Implications for Social Issues in Management. Journal Of Management Studies, 58(6), 1441–1470.
García-Sánchez, I.-M., Aibar-Guzmán, C., Serrano-Valdecillos, C., & Aibar-Guzmán, B. (2022). Analysis of The Dialogue With Stakeholders By The Ibex 35 Companies. Sustainability, 14(3), 1913.
Gunanto, A., & Preda, L. E. (2023). Financial Harmony in Diversity: Exploring The Dynamics of Smes’ Finance Through The Lens of Business Size, Debt-to-Equity Ratio, and Revenue Growth Toward The Perfection of Net Profit Margin. Sar Journal - Science And Research, 230–235.
Gunanto, A., & Preda, L. E. (2023). Financial Harmony in Diversity: Exploring The Dynamics Of Smes’ Finance Through The Lens of Business Size, Debt-to-Equity Ratio, and Revenue Growth Toward The Perfection of Net Profit Margin. Sar Journal - Science And Research, 230–235.
Hapsila, A., Astarina, I., Dewi, P., Ramadhan, G., & Remofa, Y. (2023). Effect of Receivable Turnover, Net Profit Margin and Cash Turnover Return on Assets at Pt. Prime Papadaan. International Journal Of Applied Research And Sustainable Sciences, 1(3), 187–200.
Hapsoro, D., Wicaksono, C. A., & Primaretka, T. A. (2020). Does CSRD Moderate The Effect of Financial Performance on Stock Return? Evidence of Indonesian Mining Companies. Jurnal Akuntansi & Auditing Indonesia, 24(1), 1–10.
Hendawati, H. (2017). Analisis Current Ratio, Debt to Equity Ratio dan Total Asset Turn Over terhadap Return on Equity. Jurnal Sikap (Sistem Informasi, Keuangan, Auditing Dan Perpajakan), 1(2), 97–111.
Johnson-Cramer, M. E., Phillips, R. A., Fadlallah, H., Berman, S. L., & Elms, H. (2022). What We Talk About When We Talk About Stakeholders. Business & Society, 61(5), 1083–1135.
Kalu, C. M., & Rugami, J. M. (2021). Stakeholder Involvement and Infrastructure Projects Implementation at Kenya Ports Authority. International Journal Of Business Management, Entrepreneurship And Innovation, 3(1), 78–90.
Liza, M., Budianto, E., & Khasanah, U. (2022). Pengaruh Current Ratio dan Debt to Equity Ratio terhadap Return on Equity Pada Perusahaan Subsektor Batu Bara. Point: Jurnal Ekonomi Dan Manajemen, 4(1), 15–26.
Lutfi, A., & Kurniawati, K. (2023). Implementation of The Partnership Model of The Upstream Oil and Gas Industry Using CSR and Stakeholder Theory (Partnership Practices in Governance in Pertamina Ep Zone 7). Journal Of Social Research, 2(9), 3260–3268.
Marjamaa, M., Salminen, H., Kujala, J., Tapaninaho, R., & Heikkinen, A. (2021). A Sustainable Circular Economy: Exploring Stakeholder Interests In Finland. South Asian Journal Of Business And Management Cases, 10(1), 50–62.
Muhammad Miftahul Khoiri, & Aulia Aulia. (2024). Analisis Current Ratio dan Debt to Equity Ratio terhadap Return on Equity Pada Perusahaan Manufaktur Sektor Industri Dasar Dan Kimia Sub Sektor Semen Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Rumpun Manajemen Dan Ekonomi, 1(4), 75–87.
Nada, N. C., & Hasanuh, N. (2021). Pengaruh Current Ratio dan Debt to Equity Ratio Terhadap Return On Equity. Competitive Jurnal Akuntansi Dan Keuangan, 5(2), 77.
Nafisa, A., Muhammad, H., & Sari, N. P. (2022). Corporate Bankruptcy: Evidence From The Plastics and Packaging Industry in Indonesia. International Journal Of Research In Business And Social Science (2147- 4478), 11(6), 165–174.
Nurwita, N., Rahim, E., & Konefi, F. (2022). Pengaruh Current Ratio dan Debt to Equity Ratio terhadap Net Profit Margin Pada Pt Japfa Comfeed Indonesia. Inovasi, 9(2), 113.
Pratama, M. J., Yusnita, R. T., & Lestari, S. P. (2024). Analysis of Current Ratio and Debt to Equity on Return on Equity (Case Study of a Pulp and Paper Sub-Sector Company for The 2017-2022 Period). Journal Of Management, Economic, And Accounting, 3(2).
Shabrina, N. (2020). Pengaruh Current Ratio Dan Debt To Assets Ratio Terhadap Net Profit Margin Pada Pt.Ndo Tambang Raya Megah Tbk (Periode 2008-2017)157; Jurnal Semarak, 3(2), 91–101.
S, S., Abdullah, M. W., & Obie, M. (2020). The Effect of Current Ratio And Debt to Asset Ratio on Net Profit Margin and Stock Prices: A Study Of Basic Industry and Chemicals Companies. International Journal of Scientific Research in Science and Technology, 282–294.
Sunaryo, D. (2022). The Influence of Net Profit Margin, Current Ratio and Debt to Equity Ratio on Company Value With Dividend Policy as an Intervening Variable in Retail Subsector Companies for The 2012-2019 Period. The Academy Of Management And Business, 1(1).
Veronika Siregar, U., Sembiring, L. G., Manurung, L., & Nasution, S. A. (2022). Analisa Current Ratio, Net Profit Margin, Total Asset Turnover, dan Debt To Equity Ratio Terhadap Kinerja Keuangan Pada Perusahaan Infrastruktur, Ultilitas dan Transportasi Yang Terdaftar Di Bursa Efek Indonesia Periode 2018-2020. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 4(10), 4395–4404.
Widiasmara, A., Kusherawati, A., Cahyaningati, R., & Paramita, R. W. D. (2022). The Effect of Current Ratio, Debt To Equity Ratio, Return on Assets, and Net Profit Margin on Profit Growth. Assets : Jurnal Ilmiah Ilmu Akuntansi, Keuangan Dan Pajak, 6(1), 8–15.
Widiasmara, A., Kusherawati, A., Cahyaningati, R., & Paramita, R. W. D. (2022). The Effect of Current Ratio, Debt to Equity Ratio, Return On Assets, and Net Profit Margin on Profit Growth. Assets : Jurnal Ilmiah Ilmu Akuntansi, Keuangan Dan Pajak, 6(1), 8–15.
