The Effect of Profitability and Liquidity on Capital Structure in the Food and Beverages Sub-Sector Listed on the Indonesia Stock Exchange for the 2017-2019 Period

Technological developments within the company require companies to increase capacity to maximize operations without the need to use outside resources. This is related to the profitability and liquidity of the company because these two variables are closely related to the existence of debt in the company. If the company uses resources or debt, the company must properly manage it to maximize profits and pay short-term obligations. This study aims to determine the effect of profitability and liquidity on capital structure. The population used in this study is the food and beverage sub-sector listed on the Indonesia Stock Exchange for the 2017-2019 period. This study uses a quantitative method and the object of this research is the population and the sample is selected by the purposive sampling method, namely 12 food and beverage sub-sector companies listed on the Indonesia Stock Exchange for the 2017-2019 period. The data collection technique uses the company's annual report from the 2017-2019 period. This research was conducted with the help of the IBM SPSS Statistics 25 program. The results of this study indicate that the profitability variable has a positive and insignificant effect on capital structure, liquidity has a positive and significant effect on capital.