THE INFLUENCE OF CAPITAL STRUCTURE ON THE FINANCIAL PERFORMANCE OF THE FOOD AND BEVERAGE SUB SECTOR MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE PERIOD OF 2015-2019

This study aims to determine the effect of capital structure on the financial performance of manufacturing companies in the food and beverage sub-sector for the 2015-2019 period. In this study using a qualitative descriptive method and the author uses a non-probability sampling technique, namely purposive sampling. The sample in this study is a manufacturing company in the food and beverage sub-sector. Of the 10 food and beverage companies that have been taken, the authors obtained as many as 50 data on the company's financial statements. This data uses multiple regression analysis. Multiple correlation, T test and F test. The results of this study indicate that Debt to Equity Ratio (DER) and Equity to Assets Ratio (EAR) as variables of capital structure have a positive and significant effect on company profitability as measured by Return on Equity (ROE). Which means that every time there is an increase in the Debt to Equity Ratio (DER) and Equity to Assets Ratio (EAR), the Return on Equity (ROE) will also increase.