Abstract:
The background of this research is the competition of the business world in the era of globalization that companies are required to have a competitive advantage and are able to maintain the success and continuity in improving profitability by looking at the factors that can affect the level of the company's profitability ratios. The study was conducted to determine the influence of the net profit margin and total asset turnover ratio partially on profitability in the company's food and beverages available at the Indonesia Stock Exchange 2009-2011 period. And to determine which is the most dominant factor in influencing profitabilitas.Data ratios used are secondary data with the data collection techniques in the form of data documentation of the company's financial statements. Technical analysis of data using multiple linear regression analysis using the t test with significance level 0.05. The results show that the partial penelitiaan independent variables net profit margin (x1) positive effect on the profitability ratios of 74.2% and a total asset turnover (x2) positive effect on the profitability ratio of 0.4%. The most dominant independent variable affecting profitability ratios is net profit margin, it can be seen from the value of the regression coefficient net profit margin greater than the total asset turnover regression coefficients.
