Profit growth of technology sector companies after the COVID-19 pandemic in Indonesia
Department of Accounting, Bali State Polytehcnic, Indonesia.
Research Article
World Journal of Advanced Research and Reviews, 2024, 21(01), 591–596
Publication history:
Received on 27 November 2023; revised on 03 January 2024; accepted on 06 January 2024
Abstract:
The profit growth of technology sector companies in Indonesia is supported by stable economic growth, an increase in the number of internet and smartphone users, as well as the rising penetration of e-commerce in Indonesia. The ability of companies to address challenges and adapt to market changes is crucial in determining the profit development of technology sector companies. This research aims to examine the relationship between financial ratios and company profit growth. Specifically, the study aims to investigate the impact of Profitability Ratios (net profit margin and return on assets) and Activity Ratio (total asset turnover) on technology companies listed on the Indonesia Stock Exchange. The research period used is during the COVID-19 pandemic, from 2020 to 2023. The study employs Multiple Linear Regression analysis with a significance level of 5%. The results indicate that Profitability Ratios (net profit margin and return on assets) have a positive and significant influence on profit growth. On the other hand, the Activity Ratio (total asset turnover) has a positive but not significant impact on profit growth.
Keywords:
Activity Ratio; Profitability Ratio; Profit Growth; Total Asset Turnover
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