THE EFFECT OF QUICK RATIO, DEBT TO ASSET RATIO, AND DEBT TO EQUITY RATIO ON FINANCIAL PERFORMANCE

Abstract

Financial Performance is an overview of a company's analysis in implementing the company's financial rules efficiently and effectively in producing cash positions and profits (Winarni and Novitasari, 2022). This study aims to examine the influence of QR, DAR, and DER on Financial Performance in manufacturing companies in the Consumer Non-Cycylical sector  listed on the Indonesia Stock Exchange (IDX) for the 2022-2023 period. The sample in this study is 155 annual financial statements. This study uses a quantitative approach with the STATA analysis tool. Data analysis techniques include Descriptive Analysis, Classical Assumption Test, Multiple Linear Regression Analysis, Hypothesis Test, and Model Selection Test to test and explain the relationship between research variables. The results of the study partially show that QR and DAR have no effect on financial performance. DER has a negative and significant effect on Financial Performance. Research contributes to the company to contribute to the company to provide consideration in efforts to improve the company's financial performance. The results of this study also provide input to companies regarding the importance of DER ratios for improving Financial Performance.