The Influence of Operating Cash Flow, Company Size, and Debt-to-Equity Ratio on Net Profit of Financial Companies Listed on the Indonesia Stock Exchange
DOI:
https://doi.org/10.55927/jambak.v5i1.15Keywords:
Operating Cash Flow, Company Size, Debt-to-Equity Ratio, Net Profit, Financial CompaniesAbstract
Net profit represents the result of business within a financial period. The achievement of net profit might be influenced by some factors, such as operating cash flow, company size, and debt-to-equity ratio. This study investigates the influence of operating cash flow, company size, and debt-to-equity ratio on net income of financial companies listed on the Indonesia Stock Exchange. This research employs observations from 37 samples for the periods 2021-2025. Data is obtained from secondary sources and selected through purposive sampling method. Data analysis technique in this research is multiple regression analysis which is processed through SPSS version 25. The results of this research show that each of operating cash flow and debt-to-equity ratio does not have significant influence partially on net income, while company size has significant influence partially on net income. Simultaneously, the three independent variables have significant influence on net profit.
References
Atieh, S. H. (2014). Liquidity Analysis Using Cash Flow Ratios as Compared to Traditional Ratios in the Pharmaceutical Sector in Jordan. International Journal of Financial Research, 5(3), 146-158. http://dx.doi.org/10.5430/ijfr.v5n3p146.
Brigham, E. F. & Houston, J. F. (2019). Fundamentals of Financial Management (14th ed.). South-Western College Pub.
Burke, Q.L., & Wieland, M.M. (2017). Value Relevance of Banks’ Cash Flows from Operation. Advances in Accounting, 39, 60-78. https://doi.org/10.1016/j.adiac.2017.08.002.
Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (5th ed.). Los Angeles: SAGE Publications.
Dang, C., & Li, F. (2018). Measuring firm size in empirical corporate finance. Journal of Banking & Finance, 159-176. https://doi.org/10.1016/j.jbankfin.2017.09.006.
Davidson, W. (2020). Financial Statement Analysis: Basis for Management Advice. Wiley.
Denis, D., & McConnell, J. (2003). International Corporate Governance. Journal of Financial and Quantitative Analysis, 38 (1), 1-36. https://doi.org/10.2307/4126762.
Dubey, U., Kothari, D. P., & Awari, G. K. (2017). Quantitative Techniques in Business, Management and Finance. Chapman and Hall/CRC. https://corporatefinanceinstitute.com/resources/accounting/what-is-net-income.
Schmidlin, N. (2014). The Art of Company Valuation and Financial Statement Analysis. Wiley Finance Series.
Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355–374.
Stockemer, D. (2019). Quantitative Methods for the Social Sciences: A Practical Introduction with Examples in SPSS and Stata. Ottawa, Ontario, Canada: Springer International Publishing. doi:10.1007/978-3-319-99118-4.
Toan, L.B., Long B.T., Tac, Ng.V., Khoi, L.Ng.D. (2025) “The Impact of Cash Flow, Company Size, and Financial Leverage on the Profitability of Seafood Companies in Vietnam”, Testing, Psychometrics, Methodology in Applied Psychology, Vol. 32, No. 3.
Yin, R. K. (2018). Case study research and applications: design and methods (6th ed.). Los Angeles: SAGE Publications.

























