The Effect of Net Profit Margin And Total Asset Turnover on Profit Growth in Food and Beverage Companies Listed on The IDX in 2019-2022

Abstract

This study aims to determine the effect of net profit margin and total asset turnover on profit growth. The variables used in this study are net profit margin, total asset turnover and profit growth. The research method used in this study is a quantitative method with descriptive research type, sampling in this study was carried out by purposive sampling method with predetermined criteria resulting in 19 companies. The analytical method used is multiple linear regression analysis with SPSS version 25. The partial results show that Net Profit Margin (NPM) has an effect on profit growth while Total Asset Turnover (TATO) has no effect on profit growth. The simultaneous results show that the net profit margin and total asset turnover have a simultaneous or equal effect on profit growth.