A Study Literature Review: Profit Growth

Abstract

Purpose — This study aims to examine in more depth the Profit Growth and find out what factors can influence and/or be influenced by Profit Growth.

Design/Methodology/Approach — The method used is a literature study. The sample used in this literature study is by searching for articles online using the keywords Profit Growth that have been indexed by Sinta 1 to Sinta 5 in the last 5-year period, namely from 2020 to 2024, which was carried out in conducting a literature review and obtained from Google Scholar.

Findings — The results of this literature study are that there is research stating that factors that influence Profit Growth include Debt to Equity Ratio (DER), Current Ratio (CR), and Net Profit Margin (NPM) which have a positive influence on Profit Growth. In addition, there is research stating that Debt to Asset Ratio (DAR) and Return on Assets (ROA) have a significant effect on Profit Growth, while Current Ratio (CR) and Total Assets Turnover (TATO) do not show a significant effect.

Practical Implications — These findings can provide insight for company management regarding the management of capital structure used by the company so as to produce good financial performance in an effective and efficient manner as a strategy to increase profits.

Originality/Value — The novelty element of this literature study is to conduct a further study of the factors that influence and/or are influenced by Profit Growth by highlighting the importance of managing the capital structure used by companies so that it can produce good financial performance and can influence Profit Growth in listed companies. on the Indonesian Stock Exchange (IDX).

Keywords — Literature Review; Profit Growth.

Paper Type — Literature Study.