Net profit margin key to financial success for infrastructure companies in Indonesia.
The study analyzed how different financial ratios impact the performance of infrastructure, utilities, and transportation companies in Indonesia from 2018 to 2020. The researchers found that net profit margin and total asset turnover have a positive and significant effect on financial performance, while debt to equity ratio has a negative impact. Current ratio, on the other hand, did not show a significant effect. Overall, these four ratios explain 87.2% of the variation in financial performance among the companies studied.