THE EFFECT OF NET PROFIT MARGIN, GROSS PROFIT MARGIN, AND TOTAL ASSETS TURNOVER ON PROFIT GROWTH OF CONSUMER GOODS INDUSTRY COMPANIES IN THE PERIOD 2021-2023

Abstract

Profit Growth is an increase in a company's profit over a certain period, measured by comparing this year net profit with the preceding year. This is the main factor of company's financial performance and is often used by stakeholders to assess the company's success and potential for future growth. The purpose of this study is to empirically and significantly determine the effect of net profit margin, gross profit margin and total assets turnover on the profit growth of consumer goods industry companies for the period 2021-2023. This research apply a quantitative analysis as well as the sampling mode used is purposive sampling. This research used a sample of 17 companies observed for 3 years, resulting in a total of 51 data. Data obtained from the Indonesia Stock Exchange (IDX) https://www.idx.co.id/id. Data processing using E-Views version 12.0. The results of this study explain that NPM has no effect on profit growth, gross profit margin has no effect on profit growth and total assets turnover has a negative and significant effect on profit growth.