Analysis of the Effect of Financial Performance on Profit Growth (Study on PT Pupuk Iskandar Muda North Aceh)

Abstract

Financial performance is the prospect or future, growth, and potential for good development for the company. Profit growth is a ratio that shows the company's ability to increase net profit compared to the previous year. This research was conducted at PT Pupuk Iskandar Muda North Aceh. This study aims to determine how the effect of financial performance on profit growth at PT Pupuk Iskandar Muda North Aceh. This research method is a quantitative method with the type of research used in this research is descriptive. The type of data used in this study is secondary. The data obtained is from the financial statements of PT Pupuk Iskandar Muda for the period 2020-2022. The data analysis method used is financial ratio analysis, which is measured using current ratio, debt to equity ratio, return on equity, and return on investment. The results of this study indicate that financial performance has a significant effect on profit growth at PT Pupuk Iskandar Muda.