THE EFFECT OF SOLVENCY, LIQUIDITY AND PROFITABILITY ON THE FINANCIAL PERFORMANCE OF CONSTRUCTION SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

Abstract

The purpose of this study was to determine the financial performance of construction sector companies listed on the Indonesia Stock Exchange affected by solvency (DER), liquidity (CR) and profitability (NPM). The study population consisted of 54 and 38 which were used as samples using a purposive sampling technique based on criteria. The type of data is quantitative data, and the data source is secondary data in the form of financial reports of construction sector companies listed on the IDX for 2019-2021. Multiple linear regression, t test, f test, and analysis of the coefficient of determination (R2) are the analytical techniques used with SPSS version 26. The findings show that solvency and liquidity have a negative and significant effect on financial performance while profitability has a positive and significant effect. Together solvency, liquidity and profitability have a positive and significant impact on financial performance.