IDEAS home Printed from https://ideas.repec.org/a/rbs/ijfbss/v9y2020i4p87-96.html
   My bibliography  Save this article

Profit Growth: Impact of Net Profit Margin, Gross Profit Margin and Total Assets Turnover

Author

Listed:
  • Talitha Nathaniela Nariswari

    (Faculty of Economics and Business, Widyatama University, Bandung, Indonesia)

  • Nugi Mohammad Nugraha

    (Faculty of Economics and Business, Widyatama University, Bandung, Indonesia)

Abstract

As an industry that has an important role for other industrial sectors, the plastic and packaging industry is the supply chain for consumer products. Behind the high industrial growth and the potential is still large, there are problems with plastic waste, consumption power, and changes in people's lifestyles that can affect the growth of the plastic and packaging industry. This study aims to determine how much impact the NPM (Net Profit Margin), GPM (Gross Profit Margin), TAT (Total Assets Turnover) on Profit Growth in the plastic and packaging industry sub-sector companies listed in IDX (Indonesia Stock Exchange) for the period 2014 to 2018. The method used in this study is a quantitative descriptive. The sampling technique used was purposive sampling in order to obtain a sample of 11 companies from a population of 12 companies. In the study the method of data analysis used the multiple linear regressionanalysis techniques by processing data using Eviews 8, because the data is not normally distributed, it uses the log transformation method. The results showed that simultaneously NPM (Net Profit Margin), GPM (Gross Profit Margin), TAT (Total Assets Turnover) had a significant effect on profit growth. And partially NPM (Net Profit Margin) has a significant effect on profit growth, while GPM (Gross Profit Margin) and TAT (Total Assets Turnover) have no significant effect on profit growth.

Suggested Citation

  • Talitha Nathaniela Nariswari & Nugi Mohammad Nugraha, 2020. "Profit Growth: Impact of Net Profit Margin, Gross Profit Margin and Total Assets Turnover," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 87-96, October.
    • Handle: RePEc:rbs:ijfbss:v:9:y:2020:i:4:p:87-96
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/937/712
    Download Restriction: no
    File URL: https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/937
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Silvia Angelina & Nugi Mohammad Nugraha, 2020. "Effects of Monetary Policy on Inflation and National Economy Based on Analysis of Bank Indonesia Annual Report," Technium Social Sciences Journal, Technium Science, vol. 10(1), pages 423-435, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Swapnilsingh Thakur & Shailesh Rastogi & Neha Parashar & Pracheta Tejasmayee & Jyoti Mehndiratta Kappal, 2023. "The Impact of ICT on the Profitability of Indian Banks: The Moderating Role of NPA," JRFM, MDPI, vol. 16(4), pages 1-16, March.
    2. Yang Qiao & Yiping Xia & Xiang Li & Zheng Li & Yan Ge, 2023. "Higher-order Graph Attention Network for Stock Selection with Joint Analysis," Papers 2306.15526, arXiv.org.
    3. TALÍŘ Milan & STRAKOVÁ Jarmila & VÁCHAL Jan & KOLLMANN Jaroslav, 2023. "Analysis of Value-Creating and Supporting Component of the Value Chain in the Production Process," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    4. Kenneth T. Benignos & Kristin Iris G. Estores, 2022. "Viability of an Integrated Farm as an Agritourism Site in Toboso, Negros Occidental inthe New Normal," Technium Social Sciences Journal, Technium Science, vol. 34(1), pages 483-502, August.
    5. Nida Arshad & Fareeha Waseem & Syeda Fizza Abbas, 2022. "Factors Affecting Dividend Payout Ratio of Dividend Paying Firms Listed on KSE-100 Index," iRASD Journal of Management, International Research Alliance for Sustainable Development (iRASD), vol. 4(2), pages 164-183, june.
    6. Samar Issa & Gulhan Bizel & Sharath Kumar Jagannathan & Sri Sarat Chaitanya Gollapalli, 2024. "A Comprehensive Approach to Bankruptcy Risk Evaluation in the Financial Industry," JRFM, MDPI, vol. 17(1), pages 1-22, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sardo Arifin Bintang Simbolon & Shinta Oktafien, 2021. "Effect of Work Discipline and The Work Environment on Employee Performance CV. Bolon Tua," Technium Social Sciences Journal, Technium Science, vol. 20(1), pages 704-725, June.
    2. Mirza, Nawazish & Naqvi, Bushra & Rizvi, Syed Kumail Abbas & Umar, Muhammad, 2023. "Fiscal or monetary? Efficacy of regulatory regimes and energy trilemma of the inflation reduction act (IRA)," International Review of Financial Analysis, Elsevier, vol. 90(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijfbss:v:9:y:2020:i:4:p:87-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hasan Dincer (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.