Year: 2025
Type: article
Abstract: This study aims to analyze the effects of profitability and liquidity on capital structure in the defense industry in Bandung during the period 2017-2024. Using a descriptive-verification quantitative approach, this study uses secondary data derived from the company's financial statements. Profitability is proxied by the net profit margin (NPM), liquidity by the current ratio (CR), and capital structure by the debt-to-equity ratio (DER). The results show that neither profitability nor liquidity significantly affects capital structure, either partially or simultaneously. However, NPM shows potential as a reliable indicator to manage capital structure in accordance with industry standards. These results suggest that increasing internal profitability can be a key strategy for the defense industry in Bandung in strengthening the sustainability of its capital structure.
DOI: 10.14419/8s5k8m37
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4413692211