The Effect of Equity and Liabilities on Net Profit of Manufacturing Companies Listed on The Indonesia Stock Exchange

Abstract

This study aims to analyze the effect of equity and liabilities on net profit manufacturing companies listed on the Indonesia Stock Exchange. The type of research used is associative causal by using quantitative methods. The analytical method used is multiple linear regression with the independent variables equity and liabilities and the dependent variable is net income. The data in this study used secondary data taken from www.idx.co.id. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange for the 2022 period. This study uses data from 2022 periods with 55 manufacturing companies as a sample. The study shows that the lowest equity is PT. Siantar Top Indonesia Tbk and the highest is owned by PT. Lion Metal Works Tbk. The lowest liability value is owned by PT. Astra International Tbk, and the highest is owned by PT. Lion Metal Works Tbk. The lowest net profit is owned by PT. Astra International Tbk and the highest net profit belongs to PT. Lion Metal Works Tbk, Equity partially has a positive effect on net income, Liabilities partially have no effect on net income, and equity and liabilities simultaneously have an effect on net income.