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Abstract
This study aims to determine whether the asset turnover ratio, current ratio, debt ratio and return on net worth influences profitability at each firm life cycle stages in manufacturing companies on the Indonesia Stock Exchange. The study only focuses on introduction stage and growth stage. The classification at each stage of the firm life stages uses the sales growth variable to categorize it. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2020 period. The sampling technique in this study used purposive sampling technique and obtained a sample of 36 companies. The data analysis method used is panel data multiple regression analysis. The results indicate that at introduction stage only debt ratio and return on net worth that found has a significance influences on profitability. At growth stage almost all independent variable has a significance influences on profitability, except current ratio variable.
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Copyright (c) 2022 M Kemal Al Rasyid, Poppy Nurmayanti, Hariadi Hariadi
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References
- Aldaas, A. (2021). The effect of firm life cycle on profitability: Evidence from Jordanian firms. Management Science Letters, 11, 1919–1926. https://doi.org/10.5267/j.msl.2021.1.009
- Amir, A., & Wuu, B. (2020). the Effect of Solvability Ratio and Current Ratio on Profitability At Chemical Sector Companies Listed in the Indonesia Stock Exchange. Jurnal Ekonomi Bisnis Manajemen Prima, 1(2), 24–37. https://doi.org/10.34012/jebim.v1i2.854
- Angelina, C., Sharon, S., Lim, S., Lombogia, J. Y. R., & Aruan, D. A. (2020). Pengaruh Current Ratio, Debt to Equity, Perputaran Kas dan Total Asset TurnOver (TATO) Terhadap Profitabilitas pada Perusahaan Food & Beverages yang terdaftar di Bursa Efek Indonesia. Owner, 4(1), 16. https://doi.org/10.33395/owner.v4i1.178
- Anthony, J. H., & Ramesh, K. (1992). Association between accounting performance measures and stock prices. A test of the life cycle hypothesis. Journal of Accounting and Economics, 15(2–3), 203–227. https://doi.org/10.1016/0165-4101(92)90018-W
- Barus, A. C., & Leliani. (2013). Analisis Faktor-Faktor yang Mempengaruhi Profitabilitas pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia. Jurnal Wira Ekonomi Mikroskil, 3(2), 111–121.
- Black, E. L. (1998). Life-cycle impacts on the incremental value-relevance of earnings and cash flow measures. Journal of Financial Statement Analysis, 4(1), 40–56.
- Chandra, S., & Juliawati, C. (2020). Effects of Long Term Debt to Total Assets, Short Term Debt to Total Assets, Total Asset Turnover, and Inventory Turnover on Profitability of Manufacturing Companies in Consumer Goods Subsector Listed on IDX. Journal of Applied Business and Technology, 1(3), 212–222.
- Chinedu Innocent, E., Ifeoma Mary, O., & Monday Matthew, O. (2013). Financial Ratio Analysis as a Determinant of Profitability in Nigerian Pharmaceutical Industry. International Journal of Business and Management, 8(8), 107–117. https://doi.org/10.5539/ijbm.v8n8p107
- Farihah, A. M. (2015). Pengaruh debt ratio, debt to equity ratio, longterm debt to equity ratio, kepemilikan institusional dan kepemilikan manajerial terhadap profitabilitas pada Perusahaan LQ 45. Universitas Islam Negeri Maulana Malik Ibrahim.
- Gitman, L. J. (2015). Principles of Managerial Finance. New York: Pearson Education Limited.
- Gort, M., & Klepper, S. (1982). Time Paths in the Diffusion of Product Innovations. The Economic Journal, 92(367), 630. https://doi.org/10.2307/2232554
- Halim, A. (2017). Pengaruh Current Ratio, Debt To Equity Ratio dan Debt to Assets Ratio Terhadap Profitabilitas Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2012-2015.
- Hery. (2015). Analisis Laporan Keuangan. Yogyakarta: Centre for Academic Publishing Service.
- Hofstrand, D. (2019). Understanding Profitability. In Https://Www.Extension.Iastate.Edu/Agdm/Wholefarm/Html/C3-24.Html (Issue December). Iowa State University Extension and Outreach.
- Horne, J. C. Van, & Wachowicz, J. M. (2014). Prinsip-Prinsip Manajemen Keuangan. Penerbit Salemba Empat.
- Jensen, M. C. (1986). Journal of Social and Personal. Journal of Social and Personal Relationship, 15(6), 755–773.
- Jovanic, B. (1982). Selection and the Evolution of Industry. Econometrica, 50(3), 649–670.
- Jumingan. (2014). Analisis Laporan Keuangan. Jakarta: Bumi Aksara.
- Kasmir. (2008). Analisis Laporan Keuangan. Jakarta: Rajawali Pers.
- Kasmir. (2014). Analisis Laporan Keuangan. Jakarta: PT Rajagrafindo Persada.
- Kasmir. (2015). Analisis Laporan Keuangan (1st ed.). Jakarta: Rajawali Pers.
- Kazanjian, R. K. (1988). Relation of Dominant Problems to Stages of Growth in Technology-Based New Ventures. Academy of Management Journal, 31(2), 257–279. https://doi.org/10.5465/256548
- Kumar, S., & Bansal, L. K. (2008). The impact of mergers and acquisitions on corporate performance in India. Management Decision, 46(10), 1531–1543. https://doi.org/10.1108/00251740810920029
- Kusriyanti, I. (2017). Analisis Pengaruh Current Ratio (CR), Debt Ratio (DR) dan Total Asset Turnover (TATO) Terhadap Profitabilitas (ROI) Perusahaan Telekomunikasi di Indonesia (Studi Kasus pada Perusahaan Telekomunikasi yang terdaftar di Bursa Efek Indonesia tahun 2009- 2016).
- Myers, S. C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5(2), 147–175. https://doi.org/10.1016/0304-405X(77)90015-0
- Park, Y., & Chen, K. H. (2006). The effect of accounting conservatism and life-cycle stages on firm valuation. Journal of Applied Business Research, 22(3), 75–92. https://doi.org/10.19030/jabr.v22i3.1428
- Polli, R. E. (1968). A Test of the Classical Product Life Cycle by Means of Actual Sales Histories. University of Pennsylvania.
- PWC. (2017). IFRS 9, Financial Instruments-Understanding the Basics. PWC.
- Qamara, T., Wulandari, A., Sukoco, A., & Suyono, J. (2020). The Influence of Current Ratio, Debt to Equity Ratio, And Total Asset Turnover Ratio on Profitability of Transportation Companies Listed On the Indonesia Stock Exchange 2014-2018. International Journal of Integrated Education, Engineering and Business, 3(2), 81–93. https://doi.org/10.29138/ijieeb.v3i2.1169
- Sefiani, C. Y. K., & Sitohang, S. (2015). Pengaruh current ratio, total asset turn over, dan umur perusahaan terhadap profitabilitas. Jurnal Ilmu dan Riset Manajemen, 4(11), 1-15.
- Spence, A. M. (1977). Entry, Capacity, Investment and Oligopolistic Pricing. The Bell Journal of Economics, 8(2), 534. https://doi.org/10.2307/3003302
- Sugiyono. (2017). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.
- Sunjoko, M. I., & Arilyn, E. J. (2016). Effect of inventory turnover, total asset turnover, fixed asset turnover, current ratio and average collection period on profitability. Jurnal Bisnis dan Akuntansi, 18(1), 79–83.
- Vatansever, M., & Hepsen, A. (2013). Determining Impacts on Non-Performing Loan Ratio in Turkey. Journal of Finance and Investment Analysis, 2(4), 119–129.
- Wikardi, L. D., & Wiyani, N. T. (2017). Pengaruh Debt to Equity Ratio, Firm Size, Inventory Turnover, Assets Turnover dan Pertumbuhan Penjualan Terhadap Profitabilitas. Jurnal Online Insan Akuntan, 2(1), 99–118.
- Wulandari, S., & Zulhaimi, H. (2017). Pengaruh Profitabilitas terhadap Corporate Social Responsibility Pada Perusahaan Manufaktur dan Jasa yang Terdaftar di Bursa Efek Indonesia Corporate social responsibility atau Pengolahan Lingkungan Hidup (Proper) merupakan Program Kementrian Lingkungan. Jurnal Riset Akuntansi dan Keuangan, 5(1), 1477–1488.
References
Aldaas, A. (2021). The effect of firm life cycle on profitability: Evidence from Jordanian firms. Management Science Letters, 11, 1919–1926. https://doi.org/10.5267/j.msl.2021.1.009
Amir, A., & Wuu, B. (2020). the Effect of Solvability Ratio and Current Ratio on Profitability At Chemical Sector Companies Listed in the Indonesia Stock Exchange. Jurnal Ekonomi Bisnis Manajemen Prima, 1(2), 24–37. https://doi.org/10.34012/jebim.v1i2.854
Angelina, C., Sharon, S., Lim, S., Lombogia, J. Y. R., & Aruan, D. A. (2020). Pengaruh Current Ratio, Debt to Equity, Perputaran Kas dan Total Asset TurnOver (TATO) Terhadap Profitabilitas pada Perusahaan Food & Beverages yang terdaftar di Bursa Efek Indonesia. Owner, 4(1), 16. https://doi.org/10.33395/owner.v4i1.178
Anthony, J. H., & Ramesh, K. (1992). Association between accounting performance measures and stock prices. A test of the life cycle hypothesis. Journal of Accounting and Economics, 15(2–3), 203–227. https://doi.org/10.1016/0165-4101(92)90018-W
Barus, A. C., & Leliani. (2013). Analisis Faktor-Faktor yang Mempengaruhi Profitabilitas pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia. Jurnal Wira Ekonomi Mikroskil, 3(2), 111–121.
Black, E. L. (1998). Life-cycle impacts on the incremental value-relevance of earnings and cash flow measures. Journal of Financial Statement Analysis, 4(1), 40–56.
Chandra, S., & Juliawati, C. (2020). Effects of Long Term Debt to Total Assets, Short Term Debt to Total Assets, Total Asset Turnover, and Inventory Turnover on Profitability of Manufacturing Companies in Consumer Goods Subsector Listed on IDX. Journal of Applied Business and Technology, 1(3), 212–222.
Chinedu Innocent, E., Ifeoma Mary, O., & Monday Matthew, O. (2013). Financial Ratio Analysis as a Determinant of Profitability in Nigerian Pharmaceutical Industry. International Journal of Business and Management, 8(8), 107–117. https://doi.org/10.5539/ijbm.v8n8p107
Farihah, A. M. (2015). Pengaruh debt ratio, debt to equity ratio, longterm debt to equity ratio, kepemilikan institusional dan kepemilikan manajerial terhadap profitabilitas pada Perusahaan LQ 45. Universitas Islam Negeri Maulana Malik Ibrahim.
Gitman, L. J. (2015). Principles of Managerial Finance. New York: Pearson Education Limited.
Gort, M., & Klepper, S. (1982). Time Paths in the Diffusion of Product Innovations. The Economic Journal, 92(367), 630. https://doi.org/10.2307/2232554
Halim, A. (2017). Pengaruh Current Ratio, Debt To Equity Ratio dan Debt to Assets Ratio Terhadap Profitabilitas Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2012-2015.
Hery. (2015). Analisis Laporan Keuangan. Yogyakarta: Centre for Academic Publishing Service.
Hofstrand, D. (2019). Understanding Profitability. In Https://Www.Extension.Iastate.Edu/Agdm/Wholefarm/Html/C3-24.Html (Issue December). Iowa State University Extension and Outreach.
Horne, J. C. Van, & Wachowicz, J. M. (2014). Prinsip-Prinsip Manajemen Keuangan. Penerbit Salemba Empat.
Jensen, M. C. (1986). Journal of Social and Personal. Journal of Social and Personal Relationship, 15(6), 755–773.
Jovanic, B. (1982). Selection and the Evolution of Industry. Econometrica, 50(3), 649–670.
Jumingan. (2014). Analisis Laporan Keuangan. Jakarta: Bumi Aksara.
Kasmir. (2008). Analisis Laporan Keuangan. Jakarta: Rajawali Pers.
Kasmir. (2014). Analisis Laporan Keuangan. Jakarta: PT Rajagrafindo Persada.
Kasmir. (2015). Analisis Laporan Keuangan (1st ed.). Jakarta: Rajawali Pers.
Kazanjian, R. K. (1988). Relation of Dominant Problems to Stages of Growth in Technology-Based New Ventures. Academy of Management Journal, 31(2), 257–279. https://doi.org/10.5465/256548
Kumar, S., & Bansal, L. K. (2008). The impact of mergers and acquisitions on corporate performance in India. Management Decision, 46(10), 1531–1543. https://doi.org/10.1108/00251740810920029
Kusriyanti, I. (2017). Analisis Pengaruh Current Ratio (CR), Debt Ratio (DR) dan Total Asset Turnover (TATO) Terhadap Profitabilitas (ROI) Perusahaan Telekomunikasi di Indonesia (Studi Kasus pada Perusahaan Telekomunikasi yang terdaftar di Bursa Efek Indonesia tahun 2009- 2016).
Myers, S. C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5(2), 147–175. https://doi.org/10.1016/0304-405X(77)90015-0
Park, Y., & Chen, K. H. (2006). The effect of accounting conservatism and life-cycle stages on firm valuation. Journal of Applied Business Research, 22(3), 75–92. https://doi.org/10.19030/jabr.v22i3.1428
Polli, R. E. (1968). A Test of the Classical Product Life Cycle by Means of Actual Sales Histories. University of Pennsylvania.
PWC. (2017). IFRS 9, Financial Instruments-Understanding the Basics. PWC.
Qamara, T., Wulandari, A., Sukoco, A., & Suyono, J. (2020). The Influence of Current Ratio, Debt to Equity Ratio, And Total Asset Turnover Ratio on Profitability of Transportation Companies Listed On the Indonesia Stock Exchange 2014-2018. International Journal of Integrated Education, Engineering and Business, 3(2), 81–93. https://doi.org/10.29138/ijieeb.v3i2.1169
Sefiani, C. Y. K., & Sitohang, S. (2015). Pengaruh current ratio, total asset turn over, dan umur perusahaan terhadap profitabilitas. Jurnal Ilmu dan Riset Manajemen, 4(11), 1-15.
Spence, A. M. (1977). Entry, Capacity, Investment and Oligopolistic Pricing. The Bell Journal of Economics, 8(2), 534. https://doi.org/10.2307/3003302
Sugiyono. (2017). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.
Sunjoko, M. I., & Arilyn, E. J. (2016). Effect of inventory turnover, total asset turnover, fixed asset turnover, current ratio and average collection period on profitability. Jurnal Bisnis dan Akuntansi, 18(1), 79–83.
Vatansever, M., & Hepsen, A. (2013). Determining Impacts on Non-Performing Loan Ratio in Turkey. Journal of Finance and Investment Analysis, 2(4), 119–129.
Wikardi, L. D., & Wiyani, N. T. (2017). Pengaruh Debt to Equity Ratio, Firm Size, Inventory Turnover, Assets Turnover dan Pertumbuhan Penjualan Terhadap Profitabilitas. Jurnal Online Insan Akuntan, 2(1), 99–118.
Wulandari, S., & Zulhaimi, H. (2017). Pengaruh Profitabilitas terhadap Corporate Social Responsibility Pada Perusahaan Manufaktur dan Jasa yang Terdaftar di Bursa Efek Indonesia Corporate social responsibility atau Pengolahan Lingkungan Hidup (Proper) merupakan Program Kementrian Lingkungan. Jurnal Riset Akuntansi dan Keuangan, 5(1), 1477–1488.