The Effect of Gross Profit, Operating Profit, and Net Profit in Predicting Future Cash Flows in Manufacturing Companies Listed on the Idx 2021–2024 Period
DOI:
https://doi.org/10.59890/ijma.v4i3.13Keywords:
Gross Profit, Operating Profit, Net Profit, Cash FlowAbstract
In order to forecast future cash flows in main consumer goods manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the years 2021–2024, this study will examine the impact of gross profit, operating profit, and net profit. 35 of the 128 enterprises in the study population were chosen as samples using the purposive sampling technique. The companies' annual financial statements provided the data, which were then examined using multiple linear regression analysis with SPSS version 26, classical assumption tests, and descriptive statistics. The findings indicate that operational profit has a positive and large impact on future cash flow prediction, net profit has a positive and significant impact, and gross profit has a negative and minor influence. Gross profit, operating profit, and net profit all have a big impact on projecting future cash flows at the same time. According to the coefficient of determination analysis, gross profit, operating profit, and net profit account for 53.6% of the volatility in future cash flows, with an Adjusted R Square value of 0.536.
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