Business, Management and Accounting
3 years ago

Debt ratio negatively impacts financial performance in Indonesian manufacturing companies.

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PENGARUH FINANCIAL LEVERAGE TERHADAP KINERJA KEUANGAN PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA
Henny Setyo Lestari, Rosiana Dewi

Paper Summary

The study looked at how different types of debt affect the financial performance of manufacturing companies in Indonesia. They analyzed data from 106 companies over a five-year period. The results showed that having more debt compared to assets can lower the return on assets, while having a higher debt to equity ratio and interest coverage ratio can increase the return on assets.