ANALISIS PENGARUH CASH HOLDING DAN UKURAN PERUSAHAAN TERHADAP PROFITABILITAS PERUSAHAAN SEKTOR HEALTHCARE YANG TERDAFTAR DI BEI TAHUN 2023-2025

Abstract

Profitability is an important indicator of a company's financial performance and reflects its ability to generate earnings from available resources. In the healthcare sector, maintaining an optimal level of cash holding is essential to support operational activities and investment decisions, while firm size is often considered a factor that may influence profitability. This study aims to examine the effect of cash holding and firm size on profitability in healthcare companies listed on the Indonesia Stock Exchange (IDX) during the 2023–2025 period. This study employed a quantitative approach using secondary data obtained from audited annual financial statements published by the Indonesia Stock Exchange and the official websites of the respective companies. The sample consisted of 33 healthcare companies, resulting in 99 firm-year observations, selected using purposive sampling. Panel data regression analysis was conducted, and the Random Effect Model (REM) was selected based on the Chow and Hausman tests. The results indicate that cash holding has a positive and statistically significant effect on profitability, suggesting that maintaining adequate cash reserves enhances a company's ability to generate earnings. Conversely, firm size does not have a significant effect on profitability, indicating that a larger asset base does not necessarily improve financial performance. These findings imply that effective cash management plays a more important role in enhancing profitability than firm size in Indonesia's healthcare sector.