The Effect of Capital Structure and Liquidity on the Financial Performance of Manufacturing Companies in the Food and Beverage Sub-Sector on the Indonesia Stock Exchange (IDX) for the 2020-2023 Period

This study aims to find out and analyze whether the capital structure (Debt to
Equity Ratio) and Liquidity (Current Ratio) directly and simultaneously affect
financial performance (Return on Asset). This type of research is quantitative that
is used to research a predetermined population and sample. In this study, sampling
using purposive sampling, which is based on predetermined criteria for 15
manufacturing companies in the food and beverage sub-sector on the Indonesia
Stock Exchange for the 2020-2023 period. The data analysis method was carried
out by panel data regression analysis with Eviews-12. The regression model used is
the Common Effect Model (CEM) by testifying the classical assumptions, the t-test
and the f-test.
The results of the test through the t-test were obtained that the first hypothesis
of this study was accepted, which stated that the capital structure (Debt to Equity
Ratio) had an effect on financial performance (Return on Asset). The second
hypothesis of this study was accepted, which stated that liquidity (Curren Ratio)
has an effect on financial performance (Return on Asset). Meanwhile, the F test
results that capital structure (Debt to Equity Ratio) and liquidity (Curren Ratio)
together affect financial performance (Return on Assset)
Keywords: Capital Structure, Liquidity and Financial Performance.