Profitability Analysis Of Coal Mining Companies Based On Indonesia Sharia Stock Index: A Review Of Net Profit Margin, Total Asset Turnover And Company Size

Abstract

This research was motivated by the condition of profitability values in coal mining companies listed on the Indonesia Sharia Stock Index for the 2018-2020 period which experienced fluctuations. The rise and fall of profitability levels causes companies to experience instability and affects investors' attitudes in investing their funds. This paper aims to analyze the profitability of coal companies, viewed from the aspects of Net Profit Margin, Total Asset Turnover and Compony Size. This research uses a quantitative approach, using associative research, and the data source uses secondary data with a sample of 11 companies. The population used is coal mining companies registered in the Indonesia Sharia Stock Index for the 2018-2020 period. The sampling technique used purposive sampling and data processing in this study used E-views 9 software with panel data regression analysis techniques. The results of this research are that (1) Net profit margin has a significant effect on profitability. (2) Total asset turnover has a significant effect on profitability. (3) Company size has a significant effect on profitability. (4) Net profit margin, total asset turnover, and company size together have a significant effect on profitability. The practical implication of this paper is that companies pay attention to the company size (total assets) of the company so that they can absolutely influence the company's profitability.