INFLUENCE OF LIQUIDITY ON PROFITABILITY IN PRIMARY CONSUMER GOODS FOOD AND BEVERAGE SUBSECTOR IN IDX 2016-2021

Abstract

This study aims to provide empirical evidence regarding the effect of liquidity (Current Ratio, liquidity (Quick Ratio), and liquidity (Cash Ratio) to profitability (ROA). The variables used are independent variables and dependent variables. The independent variables are liquidity (Current Ratio), liquidity (Quick Ratio), and liquidity (Cash Ratio) and the dependent variable is profitability (ROA). This study took data by purposive sampling method in the Food and beverage listed on the IDXIC Indonesia Stock Exchange (IDX) in 2016-2021, namely 10 companies with a sample of 60. The period of data collection in this sample is 6 years, from 2016- 2021. The analytical method used is multiple linear regression analysis using SPSS 15 with a significance level (α) of 5%. The results of the study prove that partially the liquidity (Quick Ratio) has a positive and significant effect on profitability (ROA) while the liquidity (Current Ratio) and liquidity (Cash Ratio) have no effect on profitability (ROA). Simultaneous Test concluded that the research model is quite good, which means that the variables liquidity (Current Ratio, Quick Ratio and Cash Ratio) are able to explain the profitability (ROA) variable.