Determinants of the Net Profit of PT Indofood Sukses Makmur Tbk: Evidence from Firm Size, Capital Structure, And Inflation (1999–2024)

PT Indofood Sukses Makmur Tbk, as one of the leading FMCG companies in Indonesia, has experienced significant fluctuations in net profit during the period 1999–2024, despite continuous growth in total assets. This study aims to analyze the effect of Total Assets, Debt to Equity Ratio (DER), and Inflation on Net Profit. This research employs a quantitative approach using a time series method and multiple linear regression analysis (OLS) with EViews 13. The data consist of annual data from 2000 to 2024 obtained from audited financial statements and official inflation data, and include a lagged variable to capture the dynamic behavior of net profit over time. The results show that Total Assets do not have a significant direct effect on Net Profit, indicating that asset growth does not necessarily translate into higher profitability without efficient utilization. Meanwhile, DER and Inflation have a negative and significant effect on Net Profit, suggesting that higher leverage and inflationary pressure tend to reduce profitability. The lagged Net Profit variable has a positive and significant effect, indicating the presence of profit persistence. Simultaneously, all independent variables significantly affect Net Profit with an R-squared value of 0.897. These findings indicate that capital structure and macroeconomic conditions play a more dominant role in determining profitability compared to asset growth alone, emphasizing the importance of efficient resource management in improving financial performance.