THE EFFECT OF WORKING CAPITAL TO TOTAL ASSET (WCTA) AND TOTAL ASSET TURNOVER (TATO) ON PROFIT GROWTH (PG) IN COMPANIES LISTED ON THE ISLAMIC STOCK INDEX (ISSI)

Abstract

Global business competition is intensifying, necessitating organizations to improve their performance. Therefore, corporations are required to produce annual financial reports to enable investors to obtain information about profit growth. This study seeks to investigate the effects of Working Capital to Total Assets (WCTA) and Total Asset Turnover (TATO) on Profit Growth (PG), both individually and collectively, at PT. Metrodata Electronics Tbk. The research utilizes descriptive analysis through a quantitative methodology. Research findings demonstrate that WCTA has no significant partial influence on PG, with a determination coefficient of 52.2%, whereas TATO exhibits a substantial partial effect on PG, with a determination coefficient of 57.5%. Moreover, WCTA and TATO concurrently exhibit a substantial impact on PG, with a determination coefficient of 59.1%.