The effect of financial ratios on the performance of manufacturing companies (case study on food and beverages companies listed on Idx in 2018-2020)

John Mathiang Machar Mathiang, & Kartika Dewi Sri Susilowati. (2022). The effect of financial ratios on the performance of manufacturing companies (case study on food and beverages companies listed on Idx in 2018-2020). Bank and Policy, 2(3), 58–70.

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Abstract
This study aims to analyze the effect of liquidity ratio, leverage ratio, and activity ratio on the performance of food and beverages manufacturing companies that are listed on the Indonesian stock ex-change during the period of 2018-2020. The object used for this study is the food and beverages manufacturing companies that have fully published their financial statements for the fiscal year 2018-2020 and have a positive profit flow during the entire period of the study. The number of companies that qualify for the study based on the predetermined criteria amounted to 10(ten) companies. The sampling technique used is the purposive sampling method whereby the researcher determines the sample based on predetermined criteria set by the researcher. The data collection method used for this study is the documentation method, and the data analysis used is a descriptive quantitative analysis using current ratio, debt to equity ratio, inventory turnover ratio, and return on assets.
Keywords: current ratio, debt to equity ratio, inventory turnover ratio, returns on assets, and company performances.


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