FACTORS AFFECTING CAPITAL STRUCTURE IN TRADING COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE

Abstract

The aim of this research is to analyze asset growth factors and profitability factors on capital structure in trading companies listed on the Indonesian Stock Exchange with a sample of 10 companies with complete financial reports from 2020-2022. This type of research uses the ratio analysis method and descriptive analysis method, that the results of this research show that the asset growth factor has no effect on the capital structure, this bad asset growth is because the company does not have sufficient funding to increase asset growth, because the assets are To grow, you must have sufficient funds. Likewise, the profitability factor has no effect on capital structure, this is because the company can be said to be effective in generating profits. This shows that the costs incurred are less than the income earned by the company, resulting in good profits