Optimization of Profit Growth: The Impact of Debt to Equity Ratio, Total Assets Turn Over, and Net Profit Margin on Food and Beverage Sub Sector Companies

Abstract

Profit growth shows that there are fluctuations in the food and beverage sub-sector, which are influenced by various factors, including the impact of the COVID-19 pandemic and product-related issues. This study aims to empirically prove that DER (Debt to Equity Ratio), TATO (Total Assets Turn Over), and NPM (Net Profit Margin) affect profit growth in the food and beverage sub-sector listed on the IDX (Indonesia Stock Exchange) for the period 2019 to 2023. The sampling technique used was purposive sampling so a sample of 25 companies was obtained from a population of 97 companies. In this study, the data analysis method used was panel data regression. Data analysis techniques by processing using Eviews 12. The results prove that NPM (Net Profit Margin) has a significant effect on profit growth. However, DER (Debt to Equity Ratio) and TATO (Total Assets Turn Over) have no significant effect on profit growth. This research is expected to contribute to company management in designing more effective long-term financial strategies to increase profitability. Thus, the company can increase more stable and consistent profits, so as to ensure stronger business sustainability and growth.