THE IMPACT OF FINANCIAL RATIOON ON ABILITY TO PREDICT PROFIT: AN EMPIRICAL STUDY IN MNUFACTURERS OF FOOD AND BEVERAGE
Mahendra Prasanti Hilamaya, Ari Susanti, HenyKurnianingsih, Ainin Syukuria Putri
ABSTRACT
This study is conducted to test the ability to predict profit change through financial ratio in food and beverage companies registered in Indonesia Stock Exchange during 2010-2015 period. The population used in this research as corporate objects are those foods and beverage companies registered in Indonesia Stock Exchange, with a research period of 2010-2015 amounting to 14 companies, and the ones taken to be the research objects (sample) amount to 10 companies. The data are tested using multiple regression analysis, where in order to process the data, SPSS version 21 is used. The research results indicate that Current Ratio (X1)has negative influence on profit change. Return On Equity (X3)has significant positive influence on Debt to Equity Ratio (X2)change and Total Assets Turn Over (X4)has no significant negative influence on profit change.