Trade Sector Companies in Indonesia Boost Profits with Strategic Capital Structure!
The article examines how the way a company organizes its debts (capital structure) affects its financial performance in the trade sector in Indonesia from 2015 to 2018. They looked at data from companies listed on the Indonesia Stock Exchange and used a method called panel data regression to analyze the relationship between capital structure and profitability ratios. The study found a significant connection between how companies structure their capital (using debt to equity ratio, debt to asset ratio, and long-term debt ratio) and their financial performance (measured by Gross Profit Margin, Net Profit Margin, and Return on Capital Employed) in the trade sector in Indonesia.