ANALYSIS OF SALES GROWTH, RETURN ON ASSETS, SIZE AND INTEREST RATE ON CAPITAL STRUCTURE

Abstract

The purpose of this study is to identify the factors that affect the capital structure simultaneously and partially. The factors tested in this study are sales growth, return on assets, size, and interest rate. The data used by the author in this study is secondary data obtained from the financial statements of the Indonesia Stock Exchange. The population of this study includes all companies listed in the consumer good sector on the Indonesia Stock Exchange (IDX) from 2018 to 2022, totalling 123 companies. The sample was 40 companies using purposive sampling method. The data collection method used is through articles, journals, and published financial reports. The data source obtained is secondary data from the Indonesia Stock Exchange and the official website of Bank Indonesia. this research uses descriptive and multiple regression methods. Analysed and tested with the classical assumption test. T-test and F-test. The results stated that partially sales growth, size, and interest rate have no effect on capital structure, in contrast to the variable return on assets which hash a significant negative effect on capital structure. While simultaneously sales growth, return on assets, size and interest rate have a significant effect the capital structure.