THE DETERMINANTS OF PROFITABILITY IN PROCESSED FOOD INDUSTRY IN INDONESIA

Abstract

This research is aim to explore the impact of working capital, sales growth, debt to equity, and operating efficiency ratio on the profitability of processed food industry in Indonesia. The research uses quantitative research method by using secondary data. The population in this research are 17 processed food companies listed in Bursa Efek Indonesia from 2013 until 2019. The research results showed:1) working capital has significant positive effect on profitability of processed food industry in Indonesia; 2) Sales growth has significant negative effect on profitability of processed food industry in Indonesia; 3) the debt to equity or leverage does not have any profitability of processed food industry in Indonesia; 4) operating efficiency ratio has significant negative effect on profitability of processed food industry in Indonesia.