Influencing Factors of Company's Sustainable Growth: Evidence from Indonesia


Authors : Akhmad Yafiz Syam; Budi Artinah; Antung Noor Asiah

Volume/Issue : Volume 6 - 2021, Issue 7 - July

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/3hWqRvZ

Abstract : This study aims to determine the effect of profit margin, leverage, liquidity, and asset turnover on Sustainable Growth Rate (SGR). The population in this study are manufacturing companies are listed on Indonesia Stock Exchange (IDX) 2014-2019. SGR is a company's sustainable growth rate in the highest percentage of the annual increase in sales that can be achieved based on various ratio targets, debt, and dividend payments. This study proves profit margin, leverage, and asset turnover affect the sustainability of business growth, especially leverage, which has a dominant effect, while liquidity has no effect.

Keywords : Sustainable Growth Rate (SGR), Net Profit Margin, Leverage, Liquidity, Assets Turnover

This study aims to determine the effect of profit margin, leverage, liquidity, and asset turnover on Sustainable Growth Rate (SGR). The population in this study are manufacturing companies are listed on Indonesia Stock Exchange (IDX) 2014-2019. SGR is a company's sustainable growth rate in the highest percentage of the annual increase in sales that can be achieved based on various ratio targets, debt, and dividend payments. This study proves profit margin, leverage, and asset turnover affect the sustainability of business growth, especially leverage, which has a dominant effect, while liquidity has no effect.

Keywords : Sustainable Growth Rate (SGR), Net Profit Margin, Leverage, Liquidity, Assets Turnover

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