Profit ROA Current Ratio Debt to Assets Ratio and
Gross Profit Margin This study aims to determine the effect of financial ratios such as current ratios, debt to assets ratio, gross profit margin on changes in earnings in food and beverage companies listed on the Indonesia Stock Exchange. The population of this research is food and beverage companies listed on the Indonesia Stock Exchange. The sampling technique was using purposive sampling method. Based on purposive sampling from 40 companies, it was obtained a sample of 19 companies that met the criteria. The research data is secondary data obtained from the Indonesian Stock Exchange (www. Idx.co.id) and ICMD 2016-2017. Testing the research hypothesis used multiple linear regression analysis techniques (Multiple Regression Model), with the application tool SPSS (Statistical Product and Service Solutions). The results of this study indicate that there is no significant effect between Current Ratio, Debt to Assets Ratio and Gross Profit Margin on partial changes in earnings, so it can be concluded that the first hypothesis is rejected. Likewise, the simultaneous test of Current Ratio, Debt to Assets Ratio, Gross Profit Margin simultaneously or together is unable to explain changes in the dependent variable, namely changes in earnings.
## 1. INTRODUCTIONThe capital
market in Indonesia is one of the most important factors in the development of
the national economy, it is proven that many industries and companies have used
this capital market as a medium to absorb investment and the media to
strengthen their financial position. From the 1980s to the late 1990s,
manufacturing was the main driving force for the Indonesian economy. The wider community
basically measures the success of a company or an organization based on the
company's capabilities in terms of management performance. One of the
performance assessments is profit. The income statement is a financial
statement that can report the financial position of a company within a certain
time, as well as its operations during several previous periods. So that
financial reports can be used to predict the future. Thus, the
profitability of a company can be determined by comparing the profits that the
company receives in a period with the amount of assets and working capital used
to generate this profit. Financial reports must be analyzed for use in decision
making. Financial analysis includes calculations and with financial ratio
analysis. There are several
analytical techniques used to analyze and assess a company's financial
condition and changes in profits. One technique to determine whether the
financial information generated can be useful for predicting changes in
earnings, including financial conditions in the future is financial ratio
analysis. Many studies have
used financial ratios to determine the effect of changes in corporate profits. The following describes previous research data and research results
The inconsistency
of the results of previous research regarding the effect of several financial
ratios on changes in earnings prompted the author to conduct further tests on
financial ratios consisting of Current Ratio (CR) Debt to Assets Ratio (DAR),
Gross Profit Margin (GPM), to changes in earnings. in food and beverage
companies listed on the Indonesia Stock Exchange Based on this
background, the researcher has the desire to conduct research with the title
"The study of several financial ratios and their effect on changes in
earnings in food and beverage companies listed on the Indonesia Stock Exchange
(IDX)" The formulation
of the problem in this study is how the influence of Current Ratio (CR) Debt to
Assets Ratio (DAR), Gross Profit Margin (GPM) on changes in earnings in food
and beverage companies listed on the IDX. The objective that the researcher will convey in this study is to determine the effect of Current Ratio (CR) Debt to Assets Ratio (DAR), Gross Profit Margin (GPM), on changes in earnings in food and beverage companies listed on the IDX. ## 2. LITERATURE REVIEW## 2.1. DEFINITION OF PROFITThe definition of profit is the excess of income over expenses in one accounting period [4]. " ## 2.2. CHANGE IN PROFIT Every company
tries to get maximum profit. Profits earned by the company will affect the
survival of the company. The company definitely wants an increase in profits
earned every year. The increase and decrease in profit can be seen from changes
in earnings. The change in
profit can be translated by the formula: 𝛥 𝛥Yit = Change in profit 𝒀it = Profit of a certain company for a
certain period 𝒀it-1 = Profit of a particular company in the previous period ## 2.3. FINANCIAL RATIOS The financial ratio is an index that connects two accounting numbers and is obtained by dividing one number by another in one period or several periods [5]. ## 2.4.
CURRENT RATIO
(CR)
Current ratio is
a ratio to measure the company's ability to pay short-term obligations or debt
that is due immediately when collected as a whole. The formula for
finding the current ratio can be used as follows: Current Ratio =
(Current Asset) / (Current Liabilites) From the results of ratio measurement, if the current ratio is low, it can be said that the company lacks capital to pay debts. However, if the ratio measurement results are high, the condition of the company cannot be said to be good, this can occur because there is no use of cash properly. ## 2.5.
DEBT TO
ASSETS RATIO (DAR)
Debt to Assets Ratio (DAR) is included in
the solvency ratio, this ratio is also known as the ratio that measures the
ratio between the funds provided by the owner and the funds borrowed from the
company's creditors. solvency ratio is the ratio to determine the company's
ability to pay its obligations if the company is liquidated [5]. The formula for
finding the Debt to Assets Ratio: Debt to Assets Ratio = (Total Liabilities) / (Total Asset) ## 2.6.
GROSS PROFIT
MARGIN (GPM)
Gross Profit
Margin (GPM) is included in the profitability ratio, Gross Profit Margin is a
comparison between gross profit to sales, where a high GPM ratio means that the
higher the profitability the better, so that it will affect management in
predicting changes in earnings. A high profit margin measure indicates a
company's high ability to generate certain gross profits and sales. The greater the
GPM of a company, the greater the level of profit the company achieves, and the
better the company's position in terms of asset use. The GPM ratio is
formulated as follows: GPM = (Gross Profit) / Sales ## 2.7.
THE EFFECT
OF CURRENT RATIO ON CHANGE IN PROFIT
This ratio is
used to determine the ability of the company to meet short-term obligations
because this ratio shows how far the demands of short-term creditors are met by
assets that are estimated to be cash in the same period as the debt maturity. A
low current ratio is usually considered to indicate a problem with liquidity.
Conversely, a current ratio that is too high is also not good, because it shows
the large number of idle funds which in turn can reduce the company's
profitability. Current assets are resources or claims on resources that can be converted
into cash throughout the company's operating cycle. Current ratio has a
positive relationship with changes in earnings, that is, if the current ratio
increases, future profits will also increase [3]. Based on the
explanation above, the first hypothesis can be formulated as follows: H1: Current ratio has a positive effect on changes in earnings ## 2.8.
THE EFFECT
OF DEBT TO ASSETS RATIO ON CHANGES IN EARNINGS
DAR is the ratio
of total debt to total assets, therefore this ratio explains how far assets /
assets can cover their liabilities / debts [5]. The results show that DAR has a significant effect in a negative
direction on changes in earnings [6]. Therefore, the
second hypothesis in this study is as follows: H2: DAR has a
negative effect on changes in earnings ## 2.9.
EFFECT OF
GROSS PROFIT MARGIN ON CHANGES IN PROFITS
For trading and
manufacturing companies, a low Gross Profit Margin ratio means that the company
is prone to price changes, both selling price and cost of goods. Changes in the
selling price or cost of goods can affect the company's profits. Under normal
conditions, the Gross Profit Margin must be positive because it shows that the
company can sell its products above its cost so that the company does not
experience losses. The results show that GPM has a significant effect in a
positive direction on changes in earnings [7]. Therefore, the third hypothesis in this study is as follows: H3: GPM has a
positive effect on changes in earnings Based on previous theories and research, the conceptual or theoretical framework of the variables under study can be described systematically the relationship between the variables in the research paradigm as follows:
Based on the
above framework, the researcher can formulate the following research
hypothesis: 1)
It is
suspected that the current ratio has an effect on changes in earnings 2)
It is
assumed that the debt to assets ratio has an effect on changes in earnings 3)
It is
suspected that the gross profit margin has an effect on changes in earnings 4)
It is
suspected that the current ratio, debt to assets ratio, gross profit margin effect
on changes in earnings ## 3.
RESEARCH
METHODS
The population in
this study were companies in the food and beverage sub-sector listed on the
Indonesia Stock Exchange for the period 2016-2017 with a total of 64 companies. This study used
purposive sampling collection method, namely taking samples from the population
based on certain criteria. So that the sample of this study is 19 companies.
The criteria used in sampling from the population in this study are as follows: 1)
Food
and beverage sub-sector companies listed on the Indonesia Stock Exchange for
the period 2016-2017 2)
Food
and beverage companies listed on the Indonesia Stock Exchange that had positive
profits during the study period 3) Food and beverage companies listed on the Indonesia Stock Exchange that use the Rupiah currency in their financial statements. The method of data analysis in this study
is multiple linear regression, there are conditions that must be met before
performing multiple regression analysis, namely the classical assumption test
consisting of normality test, autocorrelation test, multicollinear test, and
heteroscedasticity test. Hypothesis testing is in the form of simultaneous
hypothesis testing and partial hypothesis testing. Simultaneously, hypothesis
testing is done by using the F test. Partially, hypothesis testing is done by
using the t test. These variables can be arranged in a function or equation as follows: Y = a + b
Y = Change in Profit a = Constant b1-b4 = Regression Coefficient X1 = Current Ratio X2 = Debt to Assets Ratio X3 = Gross Profit Margin e = error ## 4.
RESULTS
AND DISCUSSION
Before doing
multiple linear regression analysis, first the classical assumption test was
carried out. Data analysis was carried out by means of descriptive statistical
analysis and multiple linear regression models. The data available for the
dependent variable is the change in profit and the independent variables
consist of Current Ratio, Debt to Assets Ratio, and Gross Profit Margin. The analysis was
carried out by testing the effect of the three independent variables on the
dependent variable simultaneously through the F statistical test and partially
through the t statistical test. The first
analysis carried out was to select companies that fit the sample criteria,
namely companies in the food and beverage sector listed on the Indonesia Stock
Exchange (IDX) for the 2016-2017 period, which had complete data for the
variables studied and distributed dividends during the study period. After obtaining
company data that match the criteria needed by the researcher, the data is
sampled and then calculated. From these data, the F statistical test and t
statistical test were carried out using multiple linear regression models with
the SPSS 21.00 program for windows. This study used purposive sampling, namely the method of observation with a specific purpose. The type of data used in this study is secondary data obtained from the Indonesia Stock Exchange (BEI). ## 4.1.
DESCRIPTIVE
STATISTICAL TEST RESULTS
The influence of the variable Current Ratio, Debt to Assets Ratio, Gross Profit Margin on changes in earnings, will first be reviewed regarding the description of the research variables with descriptive statistical analysis. Descriptive statistics provide an overview of data that can be seen from the average value (mean), standard deviation, maximum and minimum values. More details regarding the results of descriptive research statistics can be seen in table 5.1 as follows:
1)
Current
Ratio (CR) Based on table
4.1, it can be seen that the current ratio is between 0.5861 and 8.6378 with a
mean value of 3.2033 and a standard deviation of 2.3598958. The company that
has the lowest Current Ratio is PT. Sariguna Primatirta Tbk (CLEO) in 2016
amounted to 0.5861. Meanwhile, the company with the highest Current Ratio value
was Delta Djakarta Tbk (DLTA) in 2017, amounting to 8.6378. 2)
Debt
to Assets Ratio Based on table
4.1, it can be seen that the amount of Debt to Assets Ratio is between 0.0388
and 0.7191 with a mean value of 3.58471 and a standard deviation of 0.1845185.
The company with the lowest Debt to Assets Ratio was Unilever Indonesia Tbk
(UNVR) in 2017,. Meanwhile, the company with the highest Debt to Assets Ratio
was Unilever Indonesia Tbk (UNVR) in 2016, amounting to 0.7191. 3)
Gross
Profit Margin Based on table
4.1, it can be seen that the amount of Gross Profit Margin ranges between
0.1111 and 0.7388 with a mean value of 0.3665 and a standard deviation of
0.16847. The company with the lowest Gross Profit Margin was Budi Starch &
Sweetener Tbk (BUDI) in 2016, which was 0.1111. Meanwhile, the company with the
highest Gross Profit Margin value was Delta Djakarta Tbk (DLTA) in 2017,
amounting to 0.7388. 4)
Change
in Profit Based on table 4.1, it can be seen that the magnitude of the Profit Change ranges between 0.0015 and 0.7845 with a mean value of 0.1750 and a standard deviation of 0.1667. The company that had the lowest Profit Change was Ultra Jaya Milk Industry & Trading Company Tbk (ULTJ) in 2016, which was 0.0015. Meanwhile, the company with the highest profit change value was Chitose International Tbk (CINT) in 2016, amounting to 0.7845 ## 4.2.
CLASSIC
ASSUMPTION TEST
This classic
assumption test was conducted to determine the condition of the data used in
this study were free from multicollinearity, heteroscedasticity, and
autocorrelation problems. This is done in order to obtain the right analysis
model for use in this study. The results of data analysis using the classical
assumption test are as follows: 4.2.1. NORMALITY TEST A good regression
model is to have a data distribution that is normal or close to normal. To test
whether the data distribution is normal or not, one of them is by using graph
analysis. A reliable method is to look at the normal probability plot, in which
the graph shows the dots spreading around the diagonal line and the
distribution follows the direction of the diagonal line. As shown in Figure 4.1 below:
Based on the normal probability plot graph, it shows that the regression model is suitable for use in this study because the normal plot graph shows the dots spreading around the diagonal line and the distribution follows the direction of the diagonal line and the data that is owned looks evenly and quite good. This means that the regression model fulfills the normality assumption, which means that the data is normally distributed. 4.2.2. MULTICOLLINEARITY TEST Multicollinearity test aims to test whether the regression model found a correlation between independent (independent) variables. A good regression model should not have a correlation between the independent variables. To detect the presence or absence of multicollinearity in the regression model is to observe the correlation matrix value generated at the time it is processed and the VIF (Variance Inflation Factor) value and the tolerance. A regression model is free from multicollinearity problems if it has a tolerance value of more than 0.1 and a VIF value of not more than 10 (Ghozali, 2011).
Based on table 4.3, it can be seen that the tolerance
value on the independent variable is Profitability or CR of 0.481, DAR of 0.487, GPM of 0.926.
Meanwhile, the VIF CR value is 2.078, DAR is 2.053 and GPM is 1.080. From the
results of the output above, all of them meet the multicollinearity-free
requirements, namely the tolerance value> 0.1 and VIF <10 so that it can
be concluded that all variables have met the tolerance threshold requirements
of the VIF value, meaning that all variables do not occur multicollinearity
between the independent variables. 4.2.3. AUTOCORRELATION TEST The autocorrelation test aims to test whether in a linear regression model there is a correlation between sample members sorted by time. Autocorrelation usually appears in observations using time series. To find out whether autocorrelation exists or not, the Durbin Watson test is conducted, which is to compare the d value of the regression results with dL and dU from the Durbin Watson table. The following are the results of the autocorrelation test with Durbin Watson as follows:
Based on table
4.4, the output results are above the Durbin-Watson value of 1.361. While the
Durbin Watson value is based on the table n = 38, K = 3, the value of dL =
1.3177 and dU = 1.6563 is obtained. So that the value of dU <dW <4 - dU
is equal to 1.3177 <1.361 <4 - 1.6563. From the results of these
calculations, the Durbin Watson value of the regression equation in this study
is the autocorrelation free range. Therefore, in this study it can be concluded
that there is no autocorrelation in the regression equation. 4.2.4. HETEROSCEDASTICITY TEST This test aims to test whether the regression model has an inequality of variance from the residuals of one observation to another. A good regression model is a model that is free from the problem of heteroscedasticity (homoscedasticity). Details about the test results for heteroscedasticity can be seen in Figure 5.5 as follows:
With the
scatterplots graph above, it can be seen that the dots spread randomly and are
spread either above or below the number 0 on the Y axis and there is no clear
pattern in the distribution of the data. These results can be concluded that
there is no heteroscedasticity in the regression model, so the regression model
is appropriate to be used to predict changes in earnings based on the variables
that influence it, namely Current Ratio, Debt to Assets Ratio, and Gross Profit
Margin. ## 4.3.
MULTIPLE
REGRESSION ANALYSIS
Multiple linear
regression analysis is used to determine the influence of the independent
variables (Current Ratio, Debt to Assets Ratio, Gross Profit Margin) on the
dependent variable, namely changes in earnings. From the test results, the
following results were obtained:
From the research
results, the multiple regression equation is obtained as follows: PLABA = 0.234 -
0.021 CR - 0.109 DAR + 0.130 GPM + e Based on the
regression equation above, it can be interpreted as follows: ·
The
constant coefficient is 0.234, this means that it is positive, this means that the
change in profit will be worth 0.234 if each variable Current Ratio, Debt to
Assets Ratio, Gross Profit Margin is worth 0. ·
The
current ratio variable has a regression coefficient of -0.021. The negative
regression coefficient value indicates that the current ratio has a negative
effect on changes in earnings. This illustrates that if every one percent
increase in the current ratio variable, assuming other variables remain, it
will reduce changes in earnings by -0.021. ·
The
Debt to Assets Ratio variable has a regression coefficient of -0.109. The
negative regression coefficient value indicates that the Debt to Assets Ratio
has a negative effect on changes in earnings. This illustrates that if every
one percent increase in the Debt to Assets Ratio variable, assuming other
variables are constant, it will reduce the change in earnings by -0.109. ·
The
Gross Profit Margin variable has a regression coefficient of 0.130. The
positive regression coefficient value shows that the Gross Profit Margin has a
positive effect on changes in earnings. This illustrates that if every one
percent increase in the Gross Profit Margin variable, with the assumption that
other variables are fixed, it will increase the change in profit by 0.130. ## 4.4.
HYPOTHESIS
TESTING
4.4.1. STATISTICAL TEST F The F statistical
test is to determine whether all the independent variables included in the
model have a joint (simultaneous) influence on the dependent variable. The
results of the simultaneous multiple regression analysis can be seen as
follows:
In table 4.6, it
can be seen that the independent variables, namely Current Ratio, Debt to
Assets Ratio, Gross Profit Margin simultaneously or together are unable to
explain changes in the dependent variable, namely changes in earnings. This can
be seen from the calculated F value (0.686) with a significant level of 0.567
which is greater than 0.05 (α = 0.05). So it can be concluded that there
is no significant simultaneous effect between Current Ratio, Debt to Assets
Ratio, Gross Profit Margin on changes in earnings. 4.4.2. STATISTICAL TEST T (PARTIAL) This test is used
to determine the analysis of the influence of Current Ratio, Debt to Assets
Ratio, Gross Profit Margin on changes in profit in sub-food and beverage
companies listed on the Indonesia Stock Exchange from 2016 to 2017 partially,
which can be seen as follows:
Based on table
4.7 the effect of Current Ratio on changes in earnings shows the results of
calculations with a t value of -1.249 and a Current Ratio value of significance
of 0.220 is greater than the significance level 𝛼 = 5% = 0.05, then Ha1 is rejected, so it can be said that there is no
significant effect. significant between Current Ratio to changes in earnings
partially, so it can be concluded that the first hypothesis is rejected. Based on table
4.7, the effect of the Debt to Assets Ratio on changes in earnings shows the
results of the calculation with a t value of -0,503 and a significance
probability value of 0.618 is greater than the significance level 𝛼 = 5% = 0.05, then Ha2 is rejected, so it can be said that there is no
effect. which is significant between the Debt to Assets Ratio to changes in
earnings partially, so it can be concluded that the second hypothesis (Ha2) is
rejected. Based on table
4.7 the effect of Gross Profit Margin on changes in earnings shows the results
of the calculation with a t value of -0.503 and a significance probability
value of 0.618 is greater than the significance level 𝛼 = 5% = 0.05, then Ha2 is rejected, so it can be said that there is no
significant effect. significant between Gross Profit Margin on changes in
earnings partially, so it can be concluded that the second hypothesis (Ha2) is
rejected. The results of this study can be concluded through the data table below:
4.4.3. COEFFICIENT OF DETERMINATION The coefficient
of determination is used to see the relationship between the independent
variable and the dependent variable. The coefficient of determination indicated
by the Adjusted R-square value of the regression model is used to determine the
size of the social disclosure index which can be explained by the independent
variables.
From the results
of table 4.9 it can be explained that the amount of Adjusted R Square is 0.026,
this means that 2.6% of the variation in dividend policy can be explained by
variations of the five independent variables Current Ratio, Debt to Assets
Ratio, Gross Profit Margin. While the rest (100% - 2.6% = 97.4%) is explained
by other causes outside of this research model. Such as Return on Assets, Net
Profit Margin, Total Assets Turn Over. ## 4.5.
DISCUSSION
OF RESEARCH RESULTS
4.5.1. THE EFFECT OF CURRENT RATIO ON CHANGES IN
PROFIT The first hypothesis in this study is that there is an effect of Current Ratio on Changes in Profit in food and beverage sector companies listed on the Indonesia Stock Exchange. Based on the results of the t statistical test in table 4.7, it can be seen that the variable Current Ratio to changes in earnings shows the results of calculations with a t value of -1.249 and the Current Ratio value of 0.220 significance is greater than the significance level 𝛼 = 5% = 0.05, then Ha1 is rejected. , so it can be said that there is no significant effect between the Current Ratio and partial changes in earnings, so it can be concluded that the first hypothesis is rejected. Thus, Ho is
accepted and Ha1 is rejected. The results of this study are not in line with
research conducted by Meriewaty and Setyani (2005) in which the current ratio
has a positive relationship with changes in earnings, that is, if the current
ratio increases, future profits will also increase. And it is also not in line
with the research conducted by Luluk Muhimatul Ifada and Tiara Puspitasari
(2016). The insignificant result was also due to the fact that the company was not able to generate stable profits in the average year of observation, which may be due to the unstable economic climate. In addition, the insignificant results in this study are also supported by empirical facts regarding the ability of different companies to generate profits. Where there are companies that have small total assets but are able to generate greater profits, and pay larger dividends as well. So, the size of the value of the Current ratio does not have a significant effect on the size of the change in earnings 4.5.2. THE EFFECT OF DEBT TO ASSETS RATIO ON
CHANGES IN PROFITS The second
hypothesis in this study is that there is a positive influence between the Debt
to Assets Ratio and the Change in Profit in food and beverage sector companies
listed on the Indonesia Stock Exchange. Based on the results of the t
statistical test in Table 4.7, it can be seen that the Debt to Assets Ratio to
changes in earnings shows the calculation results with a t value of -0.503 and
a significance probability value of 0.618 is greater than the significance
level 𝛼 = 5% = 0.05, then Ha2 is rejected. , so it can be
said that there is no significant effect between the Debt to Assets Ratio
partially on changes in earnings, so it can be concluded that the second
hypothesis (Ha2) is rejected. This is not in line with the research results of Oktanto and Muhammad Nuryatno (2014) which show that DAR has a significant influence in a negative direction on changes in earnings. 4.5.3. THE EFFECT OF GROSS PROFIT MARGIN ON
CHANGES IN PROFITS The third
hypothesis in this study is that there is an effect of Gross Profit Margin on
Changes in Profit in food and beverage sector companies listed on the Indonesia
Stock Exchange. Based on the results of the t statistical test in table 4.7, it
can be seen that the Gross Profit Margin variable on changes in earnings shows the
calculation results with a t value of -0.503 and a significance probability
value of 0.618 is greater than the significance level 𝛼 = 5% = 0.05, then Ha2 is rejected. , so it can be said that there is no
significant effect between Gross Profit Margin on partial changes in earnings,
so it can be concluded that the second hypothesis (Ha2) is rejected. Based on Puspitasari's (2016) research results, it shows that GPM has a significant effect in a positive direction on changes in earnings. So, it is not in line with the results of this study. 4.5.4. EFFECT OF CURRENT RATIO, DEBT TO ASSETS
RATIO, GROSS PROFIT MARGIN ON CHANGES IN PROFITS The sixth hypothesis in this study is that there is a significant influence between Current Ratio, Debt to Assets Ratio, Gross Profit Margin on Profit Changes in food and beverage sector companies listed on the Indonesia Stock Exchange. Based on the results of the F statistical test in table 5.6, it can be seen that the independent variables, namely Current Ratio, Debt to Assets Ratio, Gross Profit Margin simultaneously or together are unable to explain changes in the dependent variable, namely changes in earnings. This can be seen from the calculated F value (0.686) with a significant level of 0.567 which is greater than 0.05 (α = 0.05). So, it can be concluded that there is no significant simultaneous effect between Current Ratio, Debt to Assets Ratio, Gross Profit Margin on changes in earnings. So, it can be concluded that overall the independent variables in the study cannot affect changes in earnings as the dependent variable. This is also supported by the results of the determination coefficient test in Table 4.9, it can be explained that the amount of Adjusted R Square is 0.026, this means that 2.6% of the variation in dividend policy can be explained by variations of the five independent variables Current Ratio, Debt to Assets Ratio, Gross Profit Margin. While the rest (100% - 2.6% = 97.4%) is explained by other causes outside of this research model. Such as Return on Assets, Net Profit Margin, Total Assets Turn Over. ## 5.
CONCLUSION
Based on the
results of data analysis and discussion that has been stated previously, the
conclusions of this study are as follows: 1)
Based
on the results of the t test calculation, it is said that there is no
significant effect between the Current Ratio and partial changes in earnings,
so it can be concluded that the first hypothesis is rejected. 2)
Based
on the results of the t test calculation, that there is no significant effect
between the Debt to Assets Ratio partially on changes in earnings, so it can be
concluded that Ha2 is rejected. 3)
From
the results of the t test calculation, it is said that there is no significant
effect between the Gross Profit Margin on partial changes in earnings, so it
can be concluded that the third hypothesis (Ha3) is rejected. 4) From the results of the F test calculation, the variables Current Ratio, Debt to Assets Ratio and Gross Profit Margin simultaneously have no effect on changes in earnings at food and beverage companies listed on the Indonesia Stock Exchange. ## SOURCES OF FUNDINGDirectorate of Research and Community Service Directorate General of Research and Development Strengthening Ministry of Research and Technology / National Research and Innovation Agency In accordance with the Research Contract Number: 250 / LL1 / PG / 2020 dated 27 May 2020. ## CONFLICT OF INTERESTThe author have declared that no competing interests exist. ## ACKNOWLEDGMENTNone. ## REFERENCES
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