Net profit margin drives profit growth in pharmaceutical companies, study finds.
The research aimed to see how Gross Return on Assets, Return on Equity, and Net Profit Margin affect profit growth in pharmaceutical companies in Indonesia. They studied 10 companies over 5 years and found that Net Profit Margin significantly impacts profit growth, while Return on Assets and Return on Equity have a negative effect. Overall, these factors together influence the financial health of pharmaceutical companies on the Indonesia Stock Exchange.