Profitable consumer goods companies in Indonesia thrive with optimal capital structure.
The study looked at how profitability, capital structure, and company size affect the value of consumer goods companies on the Indonesia Stock Exchange. They found that high profitability, an optimal debt-to-equity ratio, and large total assets positively influence company value. However, dividend policy did not moderate the effects of profitability and capital structure on company value. Investors should consider companies with profitability above 5%, a debt-to-equity ratio between 0.8-1.2, and total assets exceeding five trillion Rupiah.