The Effect of Liquidity, Sales Growth, Working Capital Turnover, and Leverage on the Profitability of Food and Beverage Companies Listed on the Indonesia Stock Exchange During the 2019–2023 Period

Abstract

The rapid advancement of technology in the current era of globalization has triggered business competition among companies in Indonesia. Business competition is now more competitive across all sectors, including the food and beverage sector. The food and beverage industry plays a crucial role in Indonesia's economic growth.This study aims to examine the effect of liquidity, sales growth, working capital turnover, and leverage on the profitability of food and beverage companies from 2019 to 2023. This research employs a quantitative research method. The data used in this study are secondary data in the form of company financial statements. The population of this study includes all food and beverage sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. The results of this study indicate that liquidity (Current Ratio), sales growth, and working capital turnover have a significant impact on profitability (ROA). Meanwhile, leverage has no effect on profitability (ROA).