Financial Strength Development Model to Increase Profit Growth Mediated by Profitability

DOI

10.2991/978-94-6463-994-0_16How to use a DOI?

Keywords

Financial strength; Profitability; Profit Growth; IDX BUMN20

Abstract

Study this test connection between growth profit wit financial strength namely (DAR) and (DER) of the companies IDX BUMN20 traded on the Indonesian Stock Exchange from 2021 and 2024. Returns on assets (ROA) used as element mediation in analysis This. The specific purpose is for give company IDX BUMN20 useful information and necessary factors thought about when estimate future income, via inspection financial strength, which is related to with solvency and profitability, research this mean to for help business IDX BUMN20 in identify and address problems that can hinder growth profit. The analysis model used is analysis path analysis. The purpose of approach analysis his is for now influence direct and indirect direct, or total variable, of a number of variable (exogenous) causes of endogenous variables (effects). Observed variables show pattern one-way relationship, and all variable can observe in a way directly. Data shows that debt to equity ratio asset own influence direct, positive, and significant, on return results on assets, with coefficient track of 0.519. On the other hand, it was found that level Return on Asset influenced in a way direct, negative, and significant by the Debt-to-Equity Ratio. Coefficient track of -0.665 indicates that ratio equity own influence negative in a way direct and significant on Return on Assets. Coefficient track of 0.540 indicates that the debt to asset ratio has influence direct, positive, and significant to growth profit. Its influence to growth profit is significant and negative, with coefficient track of -0.677. Return on Assets (ROA) is not is intervening variable or mediation from Debt-to-Equity Ratio (DAR) to growth profit. However, ROA can define as intervening variable or mediation from DER to growth profit. Similarly, ROA can identify as intervening variable or mediation from DER to growth prof-it.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Hendry Saladin
AU  - Yuliani Yuliani
AU  - Shelfi Malinda
PY  - 2026
DA  - 2026/02/23
TI  - Financial Strength Development Model to Increase Profit Growth Mediated by Profitability
BT  - Proceedings of the 24th Malaysia-Indonesia International Conference on Economics, Management, and Accounting (The 24th MIICEMA) in conjunction with The 9th Sriwijaya Economics, Accounting, and Business Conference (The 9th SEABC) (MIICEMA-SEABC 2025)
PB  - Atlantis Press
SP  - 234
EP  - 247
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-994-0_16
DO  - 10.2991/978-94-6463-994-0_16
ID  - Saladin2026
ER  -