Abstract:
Agam Dias Triackmal, 2021. The effect of Financial Ratio in Predicting Profit Growth
in Banking Companies Listed on the Indonesia Stock Exchange in 2019-2020. Supervised by Ridwan and Abdul Khalik.
This study is aimed at analyzing financial ratios to profit growth. The ratio of ROA, ROE,
and NPM is a measure of the ability to predict future profit growth.
The sample in this study were banking companies listed on the Indonesia Stock Exchange
(IDX) for the period 2019-2020, which amounted to 10 companies. There are three independent variables studied in this study, namely: Return On Assets (ROA), Return On Equity (ROE), and Net Profit Margin (NPM), while Profit Growth as the dependent variable. The data collection method used is purposive sampling. Data analysis tools in this study used multiple regression test, classical assumption test, F test, t test and coefficient of determination (R2) using SPSS program tools.
The results showed that simultaneously ROA, ROE, and NPM had an effect on profit
growth of 13.5% and the remaining 86.5% was explained by other variables that were not
included in the regression mode of this study. While partially, only ROA and ROE variables have a significant effect on profit growth. ROA shows a significant positive effect and ROE shows a significant negative effect.
