THE IMPACT OF FINANCIAL LIQUIDITY, SOLVENCY, GROWTH RATE AND FIRM SIZE ON INDONESIA MANUFACTURING COMPANIES PROFITABILITY

Abstract

The study aimed to investigate the effect of financial Liquidity, Solvency, Company Rate and Firm’s size on Indonesian Manufacturing Company’s Profitability (ROA) as a long term strategic analysis that helps the analyst in predicting future company’s profitability on the light of the mentioned variables in addition to external environment analysis. This research is quantitative method by using secondary data. The researcher uses profitability as the dependent variable, and uses Liquidity ratio, Solvency ratio, Growth rate and firm size as the independent variables. A sample was selected from Indonesia manufacturing companies listed in Indonesia Stock Exchange (IDX) amounting 4 companies. The study used the financial statement issued by IDX Quarterly for seven years during the period of 2010 – 2016. The finding of this research as follows: the operational the liquidity ratio, firm size, solvency ratio and growth rate has significant positive impact on ROA.