The Effect of Debt on Business Profit (Case Study at PT. Gudang Garam Tbk Listed on the Indonesia Stock Exchange for the 2015-2020 Period)
DOI:
https://doi.org/10.59890/ijebma.v4i1.701Abstract
Research conducted by the author to determine the effect of debt on operating profits at PT. Gudang Garam Tbk. Listed on the Indonesian Stock Exchange for the 2015-2020 period. The independent variable is debt, the dependent variable is operating profit. The sampling type chosen was purposive sampling. Quantitative data type. Secondary data sources include financial reports accessing www.idx.co.id and each company's website. The research results show that the effect of debt on business profits is two linear factors, characterized by the regression equation Ý = -1.242 + 0.519 x. This means that every time debt is increased by 1%, it will be followed by an increase in operating profit of 0.519 at a constant of 1.242. There is a very strong and significant influence between debt and business profits as shown by the Pearson product moment correlation coefficient r = 0.713 with tcount = 2.032, this value is greater than ttable = 2.132. In accordance with the correlation coefficient value above, the coefficient of determination is 0.508, which means that the influence of debt on business profits is 50.8% and the remaining 49.2% is explained by other variables not included in this analysis
References
Ani Rahmaniar and Soegijanto. 2016. Introduction to Basic Accounting 1, Bogor, In Media. Baridwan, Zaki, 2011, Intermediate Accounting Edition 8. Yogyakarta, BPFE.
Bambang Riyanto. 2001. Basics of Corporate Spending. BPFE, Yogyakarta.
Brigham, Eugene F. dan Houston, Joel F. 2011. Basics of Translated Financial Management. Edition 10. Jakarta: Salemba Empat.
Desilia Purnama Dewi (2012) in a journal entitled Analysis of Long-Term Debt, Short-Term Debt and Net Working Capital on Profit at PT Griya Asri Prima.
Fahmi, Irham. 2013. Financial Management. Bandung: Alphabeta.
Gitman, Lawrence J dan Chad J. Zutter. 2015. Principles of Managerial Finance. 14th Edition. Global Edition. Pearson Education Limited.
Hantono, and Rahmi, Ufrida, Namira. 2018. Introduction to Accounting. Yogyakarta: CV. Budi Utama.
Harnanto, 2002. Intermediate Financial Accounting, Book One, Yogyakarta, BPFE.
Harry. 2016. Accounting for Assets, Liabilities and Capital. Yogyakarta:PT. Gava Media.
Harry. 2017. Auditing and Insurance. Jakarta. Grasindo.
I Made Sudana. 2011. Corporate Financial Management Theory and Practice. Jakarta: Erlangga.
Indonesian Accountants Association. 2013. Statement of Financial Standards 01 : Presentation of Financial Reports (Revised 2013). Jakarta : IAI
Indonesian Accounting Association. 2010. PSAK 10 (Revised 2010): Effect of Changes in Foreign Exchange Rates. Jakarta : IAI
James M Reeve, et al. 2013. Introduction to Accounting, Book 1. Jakarta: Salemba Empat. Januri, et al. 2015. Introduction to Accounting. Prime Publisher Publishing.
Liza Nadira and Rustam (2013) in a journal entitled The Effect of Short-Term and Long-Term Debt on Profitability in Banking Companies Listed on the Indonesian Stock Exchange.
M Reeve, James. S Warren, Carl. et.al. 2010. Introduction to Indonesian Adaptation Accounting. Jakarta: Salemba Empat.
Martani, Dwi, et al. 2016. Intermediate Financial Accounting Based on PSAK, Book 2. Jakarta: Salemba Empat.
Munawir. 2017. Financial Report Analysis. Fourth Edition. Yogyakarta: Liberti
Nafarin, M. 2013. Corporate Budgeting. Jakarta: Salemba Empat
Suad Husnan and Enny Pudjiastuti. 2012. Basics of Financial Management. Sixth Edition First Printing. Yogyakarta: UPP STIM YPKN.
Subramanyam. K. R and John J. Wild. 2014. Financial Report Analysis. Translator by Dewi Y. Jakarta: Salemba Empat.
Sugiyono, 2010, Quantitative Qualitative Research Methods & RND, Bandung: Alfabeta.
_______________, 2013, Quantitative Qualitative Research Methods & RND, Bandung : Alfabeta.
Vera Handayani and Mayasari (2018) in a journal entitled Analysis of the Effect of Debt on Net Profit at PT Kereta Api Indonesia (PERSERO)
Warren et al., 2005, Accounting Principles, Jakarta: Salemba Empat
Zulia Hanum, SE, Msi (2009) in a journal entitled The Effect of Debt on Business Profit at the Tanjung Morawa Rubber Research Center, North Sumatra.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Astri Dwi Andriani, Dody Faraitody Teguh, Fitri Pebryanti
This work is licensed under a Creative Commons Attribution 4.0 International License.
