THE INFLUNCE OF LEVERAGE AND PROFITABILITY TOWARDS DIVIDEND PAYOUT RATIO IN MANUFACTURING COMPANIES

Abstract

Dividend payout ratio is the percentage from dividend per share over share price earning per share. There are several factors that might influence dividend payout ratio. The objective of this research is to investigate and influence of return on equity, current ratio, debt to equity ratio, net profit margin and return on asset toward dividend payout ratio in manufacturing companies listed in Indonesia Stock Exchange period from 2014 to 2018. In this research only use 13 companies and the data taken for 5 years. The research used multiple linear regression for analyzing the data. The result shows that debt to equity ratio showed non-significant influence, while return on equity, current ratio, return on asset and net profit margin showed significant influence. The purpose of this research of thesis is to analyze and determine of return on equity, current ratio, debt to equity ratio, net profit margin and return on asset toward dividend payout ratio in manufacturing companies that listed on Indonesia stock exchange. The result reveals the value of adjusted R-squared among return on equity, current ratio, debt to equity ratio, net profit margin and gross profit margin is 48.9% simultaneously affecting the dividend payout ratio.