The Effect of Capital Structure, Liquidity, and Profitability on Corporate Financial Performance
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Jun 15, 2025
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Abstract
This study aims to determine the effect of capital structure, liquidity, and profitability on the financial performance of transportation and logistics sector companies listed on the Indonesia Stock Exchange during the 2020-2024 period. The variables used in this study include Debt to Equity Ratio (DER), Current Ratio (CR), and Return on Assets (ROA) as independent variables, and Return on Equity (ROE) as the dependent variable. The analysis method used is panel data regression with the Random Effect Model (REM) approach, which is analysed with Eviews 12 software. The results showed that capital structure (DER) has a negative and significant effect on financial performance (ROE), while liquidity (CR) and profitability (ROA) have no significant effect. However, simultaneously, the three variables have a significant impact on financial performance. This finding confirms the importance of optimal capital structure management in improving company performance, while liquidity and profitability require more effective strategies to contribute maximally to company profits.
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This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
Purwasih, R., Suhardi, & Makrus, M. (2025). The Effect of Capital Structure, Liquidity, and Profitability on Corporate Financial Performance. MANDAR: Management Development and Applied Research Journal, 7(2), 113-123. https://doi.org/10.31605/mandar.v7i2.5135
References
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Uz-zaky, M. R., Suhardi, S., & Deseria, R. (2024). The Influence of Investment Decisions, Profitability, Capital Structure, and Company Size on the Value of Property and Real Estate Companies on the IDX. International Journal of Applied Finance and Business Studies, 12(3), 217–229. https://doi.org/10.35335/ijafibs.v12i3.333
Ulandari, S., Suhardi, & Hidayati, N. (2025). Determination of Profitability of Coal Mining Companies: the Role of Leverage, Liquidity, and Sales Growth. Daengku: Journal of Humanities and Social Sciences Innovation, 5(1), 9-16. https://doi.org/10.35877/454RI.daengku3744
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Yulanda, S. A., Suhardi, S., & Napisah, S. (2025). The Effect of Debt to Equity Ratio, Return on Equity and Earnings Per Share on Financial Profitability in the Property Sector Listed on the Indonesia Stock Exchange. Economic: Journal Economic and Business, 4(2), 81–88. https://doi.org/10.56495/ejeb.v4i2.968
Bottazzi, G., Secchi, A., Secchi, A., & Tamagni, F. (2008). Productivity, Profitability and Financial Performance. Social Science Research Network. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1194050
Ether, C., Wahyu Dwi Pranata, A. A. A., Jaya, A., Manurung, A. V., Purba, C. L., Silaban, C. Z., & Noor, D. F. (2022). Pengaruh Rasio Likuiditas dan Rasio Solvabilitas terhadap Kinerja Keuangan Perusahaan Manufaktur (Sektor Makanan dan Minuman) yang Terdaftar di BEI pada Tahun 2022-2023. Deleted Journal, 1(12), 992–1004. https://doi.org/10.62335/98d7mn18
Febrianti, S. (2024). Analisis Struktur Modal terhadap Kinerja Keuangan Perusahaan yang Terdaftar di Bursa Efek Indonesia Periode 2018-2022. https://doi.org/10.61132/rimba.v2i4.1358
Govere, G. Z., & Wadesango, O. (2024). The Influence of Capital Structure on Financial Performance: A Statistical Analysis of Robin Corporation Ltd in Zimbabwe’s Beverage Industry. Journal of Accounting, Finance and Auditing Studies, 10(4), 238–246. https://doi.org/10.56578/jafas100405
Habimana, O. (2015). Capital Structure and Financial Performance: Evidence from Firms Operating in Emerging Markets. International Journal of Academic Research in Economics and Management Sciences, 3(6), 159–166. https://doi.org/10.6007/IJAREMS/V3-I6/1383
Hakiki, Moh., Putra, R. S., Arifin, A. H., Safitri, J., & Wibowo, M. (2024). Peningkatan pengaruh kinerja keuangan terhadap dinamika harga saham dengan profitabilitas sebagai variabel moderasi pada bank umum di indonesia. Deleted Journal, 22(3), 377–387. https://doi.org/10.29062/mahardika.v22i3.922
Hidayat, R., & Wijaya, A. S. (2019). Pengaruh struktur hutang, struktur aktiva dan struktur modal terhadap kinerja perusahaan pada perusahaan tekstil dan garment yang terdaftar di Bursa Efek Indonesia periode 2015-2018. JEM Jurnal Ekonomi dan Manajemen, 5(2), 133-148.
Kurniasih, R. P., & Akhmadi, A. (2024). Profitability mediates the Influence of Operational Efficiency on Company Financial Performance. International Journal of Social Science and Human Research, 7(07). https://doi.org/10.47191/ijsshr/v7-i07-13
Lestari, A. S. A., & Suhardi, S. (2020). Pengaruh Keputusan Investasi, Ukuran Perusahaan, dan Profitabilitas Terhadap Nilai Perusahaan Pada Perusahaan Food and Beverage yang Terdaftar di Bursa Efek Indonesia. JEM: Jurnal Ekonomi Dan Manajemen STIE Pertiba Pangkalpinang, 6(1), 60-73.
Muhammed, S., Desalegn, G., & Emese, P. (2024). Effect of Capital Structure on the Financial Performance of Ethiopian Commercial Banks. Risks. https://doi.org/10.3390/risks12040069
Musah, M. B., Agyemang, A. O., & Kong, Y. (2019). Liquidity and Financial Performance: A Correlational Analysis of Quoted Non-Financial Firms in Ghana. International Journal of Trend in Scientific Research and Development. https://www.ijtsrd.com/papers/ijtsrd25248.pdf
Nam, N. H. P., & Tuyen, T. T. M. (2024). Impact of liquidity on capital structure and financial performance of non-financial-listed companies in the vietnam stock market. Future Business Journal, 10(1). https://doi.org/10.1186/s43093-024-00412-7
Nguyen, T. H. Y., Vu, V., & Pham, T. T. T. (2024). Impact of Capital Structure on Financial Performance: An Empirical Analysis of Listed Pharmaceutical and Medical Industry in Vietnam (pp. 643–652). https://doi.org/10.1007/978-981-99-8472-5_57
Ningrum, A. W., & Maryanti, E. (2022). The Effect of Profitability, Solvency, Liquidity, Capital Structure and Good Corporate Governance on Financial Performance in Food and Beverage Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange for the 2018-2020 Period. Indonesian Journal of Innovation Studies, 20. https://doi.org/10.21070/ijins.v20i.701
Nurjanah, T., Suhardi, S., & Afrizal, A. (2019). Pengaruh Current Ratio, Return on Asset, dan Earnings Per Share terhadap Harga Saham Studi Kasus pada Perusahaan Pertambangan Subsektor Batubara yang Terdaftar di Bursa Efek Indonesia Tahun 2014-2018. Jurnal Ekonomi Manajemen, 6(2), 1-15.
Prasetya, R. A. A., & Susilowati, C. (2024). Pengaruh Struktur Modal dan Pertumbuhan Penjualan Terhadap Kinerja Keuangan Melalui Moderasi Profitabilitas. Jurnal Proaksi, 11(2), 432–443. https://doi.org/10.32534/jpk.v11i2.5688
Rahmanto, B. T., Lasmiatun, K., Ar, N., Toalib, R., & Syamsinar, S. (2024). Analysis of the Effect of Liquidity, Leverage, and Profitability on the Financial Performance of Companies in the Indonesian Capital Market. West Science Business and Management, 2(04), 1181–1189. https://doi.org/10.58812/wsbm.v2i04.1499
Susiowati, S., Sochib, S., & Ali, M. (2020). The influence of profitability and activity on financial performance in mining companies registered in indonesia stock exchange. 4(2), 83–88. https://doi.org/10.30741/ASSETS.V4I2.571
Uz-zaky, M. R., Suhardi, S., & Deseria, R. (2024). The Influence of Investment Decisions, Profitability, Capital Structure, and Company Size on the Value of Property and Real Estate Companies on the IDX. International Journal of Applied Finance and Business Studies, 12(3), 217–229. https://doi.org/10.35335/ijafibs.v12i3.333
Ulandari, S., Suhardi, & Hidayati, N. (2025). Determination of Profitability of Coal Mining Companies: the Role of Leverage, Liquidity, and Sales Growth. Daengku: Journal of Humanities and Social Sciences Innovation, 5(1), 9-16. https://doi.org/10.35877/454RI.daengku3744
Warisi, D., & Kurniawan, R. (2024). Pengaruh Rasio Likuiditas, Solvabilitas, dan Efisiensi terhadap Kinerja Keuangan Perbankan Konvensional Periode 2019-2022. https://doi.org/10.55606/jekombis.v3i2.3470
Yulanda, S. A., Suhardi, S., & Napisah, S. (2025). The Effect of Debt to Equity Ratio, Return on Equity and Earnings Per Share on Financial Profitability in the Property Sector Listed on the Indonesia Stock Exchange. Economic: Journal Economic and Business, 4(2), 81–88. https://doi.org/10.56495/ejeb.v4i2.968