THE ANALYSIS OF FINANCIAL RATIO ON PREDICTING EARNING GROWTH IN SELECTED MINING COMPANY FROM IDX FOR THE PERIOD OF 2010-2012

Abstract

This study aimed to examine the influence of Working Capital to Total Asset (WCTA), Debt to Equity Ratio (DER), Total Asset Turnover (TAT), and Net Profit Margin (NPM) on predicting the Earning Growth. Population of this research is the mining industry companies listing in Indonesia Stock Exchange. The writer gets 60 samples from 20 companies in period 2010 until 2012. The method that is used in collecting data is documentation method and done by taking financial data in IDX corner. Data analysis that is used in this research is multiple regression analysis by using SPSS analysis. The result of regression shows that variable of Working Capital to Total Asset and Debt to Equity Ratio partially having negative but significant influence on the predicting Earning Growth. But, the variable of Total Asset Turnover and Net Profit Margin, partially having positive and significance influence on predicting Earning Growth. Overall, the four variables used in this study Working Capital to Total Asset, Debt to Equity Ratio, Total Asset Turnover, and Net Profit Margin simultaneously have significant influence on earnings growth, with the predictive capabilities of the four variables of 37.2%, then the remaining 62.8% is influenced by other factors that are not included in this regression model.