Factors Affecting Profitability in Indonesia's Retailing sub-sector (2019-2023)

This investigation seeks to examine the impact of liquidity and solvency on profitability in retailing sub-sector companies. Liquidity is gauged through the Current Ratio (CR) ratio while solvency uses Debt to Equity Ratio (DER). Profitability is gauged using Return on Equity (ROE). The investigati...

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Main Authors: Nurcika Putri, Dina Amelia Fitriani, Maiyaliza
Format: Article
Language:English
Published: The Management Institute, Faculty of Economics, Universitas Andalas 2025-06-01
Series:AMAR (Andalas Management Review)
Subjects:
Online Access:http://amareview.fekon.unand.ac.id/index.php/amar/article/view/209
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author Nurcika Putri
Dina Amelia Fitriani
Maiyaliza
author_facet Nurcika Putri
Dina Amelia Fitriani
Maiyaliza
author_sort Nurcika Putri
collection DOAJ
description This investigation seeks to examine the impact of liquidity and solvency on profitability in retailing sub-sector companies. Liquidity is gauged through the Current Ratio (CR) ratio while solvency uses Debt to Equity Ratio (DER). Profitability is gauged using Return on Equity (ROE). The investigation was executed utilizing a case study method using financial statements to serve as a source of secondary data. The data was examined using multiple linear regression methods to assess the connection involving the independent variables (liquidity and solvency) and the dependent variable (profitability). The findings of this investigation suggest that liquidity does not possess a significant outcome on profitability, while solvency possesses a positive and significant outcome. This research highlights the significance of good liquidity and solvency management in improving the corporation’s financial achievement. The findings are anticipated to be a reference for companies in formulating more effective financial strategies, as well as contributing to further research in the same field.
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id doaj-art-7b1a0d95cb934085b63e10ff49a0b061
institution Kabale University
issn 2476-9282
2548-155X
language English
publishDate 2025-06-01
publisher The Management Institute, Faculty of Economics, Universitas Andalas
record_format Article
series AMAR (Andalas Management Review)
spelling doaj-art-7b1a0d95cb934085b63e10ff49a0b0612025-08-20T03:27:56ZengThe Management Institute, Faculty of Economics, Universitas AndalasAMAR (Andalas Management Review)2476-92822548-155X2025-06-019110.25077/amar.9.1.1-12.2025Factors Affecting Profitability in Indonesia's Retailing sub-sector (2019-2023)Nurcika Putri0Dina Amelia FitrianiMaiyalizaUniversitas Swadaya Gunung Jati This investigation seeks to examine the impact of liquidity and solvency on profitability in retailing sub-sector companies. Liquidity is gauged through the Current Ratio (CR) ratio while solvency uses Debt to Equity Ratio (DER). Profitability is gauged using Return on Equity (ROE). The investigation was executed utilizing a case study method using financial statements to serve as a source of secondary data. The data was examined using multiple linear regression methods to assess the connection involving the independent variables (liquidity and solvency) and the dependent variable (profitability). The findings of this investigation suggest that liquidity does not possess a significant outcome on profitability, while solvency possesses a positive and significant outcome. This research highlights the significance of good liquidity and solvency management in improving the corporation’s financial achievement. The findings are anticipated to be a reference for companies in formulating more effective financial strategies, as well as contributing to further research in the same field. http://amareview.fekon.unand.ac.id/index.php/amar/article/view/209liquiditysolvencyprofitability
spellingShingle Nurcika Putri
Dina Amelia Fitriani
Maiyaliza
Factors Affecting Profitability in Indonesia's Retailing sub-sector (2019-2023)
AMAR (Andalas Management Review)
liquidity
solvency
profitability
title Factors Affecting Profitability in Indonesia's Retailing sub-sector (2019-2023)
title_full Factors Affecting Profitability in Indonesia's Retailing sub-sector (2019-2023)
title_fullStr Factors Affecting Profitability in Indonesia's Retailing sub-sector (2019-2023)
title_full_unstemmed Factors Affecting Profitability in Indonesia's Retailing sub-sector (2019-2023)
title_short Factors Affecting Profitability in Indonesia's Retailing sub-sector (2019-2023)
title_sort factors affecting profitability in indonesia s retailing sub sector 2019 2023
topic liquidity
solvency
profitability
url http://amareview.fekon.unand.ac.id/index.php/amar/article/view/209
work_keys_str_mv AT nurcikaputri factorsaffectingprofitabilityinindonesiasretailingsubsector20192023
AT dinaameliafitriani factorsaffectingprofitabilityinindonesiasretailingsubsector20192023
AT maiyaliza factorsaffectingprofitabilityinindonesiasretailingsubsector20192023