Optimizing Financial Performance: Evidence from Capital Structure, Firm Size, and Liquidity Dynamics

The objective of this study is to ascertain the impact of capital structure (DER), firm size (Ln Size), and liquidity (CR) on financial performance (ROA) among companies in the metals and other minerals sub-industry listed on the Indonesia Stock Exchange during the 2020–2024 period. The present study employs an explanatory survey design, utilizing quantitative secondary data. The population of this study consists of companies in the metals and other minerals sub-industry that are listed on the Indonesia Stock Exchange from 2020 to 2024. The purposive sampling method was employed to select the sample, resulting in the acquisition of data from 6 companies and 30 data points, encompassing a five-year observation period. The analytical methods employed encompassed descriptive statistical analysis, classical assumption tests, multiple linear regression analysis, and hypothesis testing. The findings of the research indicate that the capital structure exerts a partial influence on financial performance. Furthermore, the study demonstrates that firm size does not have a significant impact on financial performance, and liquidity does not affect financial performance. Concurrently, the capital structure, the size of the firm, and liquidity have been demonstrated to exert a simultaneous influence on financial performance.