Factor Affecting Profitability: Evidence of Animal Feed Sub Sector in Indonesia from Year (2016-2017)
It is the purpose of every company to gain profit, however, in 2015 there is an indication thateconomy is slowing down that affecting the whole word including animal feed subsectorcompanies in Indonesia which beg the question what is the condition of the company in thesucceeding in 2016 and 2017. This study aims to analyze the factor affecting the profitabilityof animal feed companies listed Indonesian Stock Exchange. The study is quantitative usingfour companies listed at animal feed sub-sector listed from the year 2016-2017 at IndonesianStock Exchange. The method used in this research is descriptive method, using Current Ratiofor liquidity and Debt to Asset from solvability and Return on asset for profitability ratio ofanimal feed four companies namely, Charoen Pokphand Indonesia Tbk (CPIN), Japfa ComfeedIndonesia Tbk (JPFA), Malindo Feedmill Tbk (MAIN), and Sierra Produce Tbk (SIPD). Dataanalysis is done using descriptive analysis, significance test, correlation test, and regressionanalysis. The results showed that in terms of descriptive statistic animal feed companies has agood level of liquidity above 1 and have a debt level above the set standard of 30%. In termsof profitability, animal feed companies have good average financial ratio meaning thatcompanies utilize assets owned efficiently to obtain profit maximally. However, the resultshows that there is no significant relationship between solvability and liquidity towardprofitability at animal feed companies form the year 2016-2017 at 5% and 10% significantlevel. Thus, the study suggests for future study to expand the sample of the study in term ofyear of sample and similar companies in different countries or region