The Effect Of Audit Quality, Leverage, Liquidity, and Sales Growth on Return on Assets of Industrial Manufacturing Companies on the Indonesia Stock Exchange2022-2024

Abstract

This study aims to examine and analyze the effect of audit quality, leverage (Debt to Asset Ratio/DAR), liquidity (Current Ratio/CR), and sales growth on financial performance (Return on Assets/ROA) of industrial sub-sector manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2022–2024. The population comprises all industrial sub-sector manufacturing companies listed on the IDX, with purposive sampling yielding 141 observations. A quantitative approach was adopted, utilizing secondary data in the form of annual reports collected through documentation. The analytical method employed is multiple linear regression with the assistance of SPSS software. The research results show  that audit quality has a positive and significant effect on financial performance, while leverage has a negative and significant effect on financial performance. In contrast, liquidity and sales growth has a no effect on financial performance.