Impact Of Free Cash Flow, Capital Structure, And Company Size On Profitability (Study On Infrastructure Sector Companies In 2018-2022)

Abstract

This research is motivated by the decline in financial which has an impact on financial performance. Companies are faced with demands to achieve profits and increase their profitability. In this study there are saveral factors that can affect profitability, namely free cash flow, capital structure, company size. The purpose og the study was to determine the impact of free cash flow, capital structure, and company size on profitability. The population in this study were infrastructure sector companies listed on the Indonesia Stock Exchange (IDX) in 2018-2022. The sampling method used was purposive sampling method and obtained 15 companies with a total sample of 75 financial statements which became the object of research. The data anaysis method is quantitative analysis using multiple linear regression analysis dan hypothesis testing using the SPSS 26 Programme. The result showed that free cash flow has a positive and significant effect n profitability, capital structure proxied by debt to asset ratio has a positive and significant effect on profitability, capital structure proxied by debt to equity ratio has a negative and significant effect on profitability, company size has no effect on profitability.