THE EFFECT OF CAPITAL STRUCTURE AND LIABILITIES ON PROFITABILITY IN FOOD AND BEVERAGE MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

Abstrak

This study was conducted to address inconsistencies in previous findings regarding the effect of capital structure (DAR and DER) and liquidity on the profitability of food and beverage companies. This study aims to examine how these key financial ratios affect company profitability, using the latest data from six publicly listed companies that consistently reported data during the 2020–2024 period. Using multiple linear regression, the partial test results show that DAR and Liquidity Ratio do not have a significant effect on profitability, while DER shows a significant effect. Simultaneously, the three independent variables contribute 42% to profitability. In conclusion, the financing structure, particularly DER, is a stronger determinant of profit levels than liquidity capacity. Further research is recommended to include operational variables and expand the scope of the study.