CORRELATION AND RELATIONSHIP ANALISYS FOR BUSINESS RISK AND COMPANY ASSETS (Case Study of Food and Beverage Companies in Indonesia)

Abstract

Purpose : This study aims to investigate how variable ratios such as capital structure, NPM, ROA,
asset structure and business risk on 60 companies listed on the IDX to know the book ending 2016.
Research methodology : The method used in this research is descriptive statistic analysis, correlation
analysis and multiple regression analysis.
Findings : result of research explains that capital structure of 60 food and beverage industry company
have significant relation with variable of Net Profit Margin (NPM) equal to 0,0658, business risk
equal to 0,0401, asset structure equal to 0,0019 and for ROA variable with no relation significant
with a value of 0.5929. So that 3 variables that have significant relationship and 1 variable of capital
structure with ROA is not significant.
Originality : This study can contribute to the existing literature, especially those related to the
analysis of the company’s financial ratios. And later the results of this study can be used as an
investigation tool about the impact of business risk to the company’s financial analysis of the food
and beverage industry.