Unveiling Mining Profitability: The Interplay of Financial Metrics and ESG Disclosures (2023–2025)
Keywords:
Profitability, Liquidity, Solvency, Activity, ESG Disclosure
Abstract
The objective of this study is to empirically examine the influence of liquidity, solvency, activity, and ESG disclosure on profitability. The sample focuses on mining sector companies listed on the Indonesia Stock Exchange (IDX) during the 2023–2025 period. Utilizing secondary data retrieved from annual financial and sustainability reports published by companies and the IDX, data processing was conducted using EViews 12. Through purposive sampling, 19 companies were selected across three years, resulting in 57 observations. The analytical framework incorporates descriptive statistics, classical assumption tests, and multiple linear regression analysis. The results show that solvency has a negative and significant effect on profitability because the interest and financial costs of debt put pressure on net profit. Liquidity has a negative and insignificant effect because current assets mainly serve as a buffer for short-term obligations. Meanwhile, activity and ESG disclosure have a positive but insignificant effect, because activity reflects daily operational efficiency, while ESG disclosure requires upfront costs with long-term benefits.
References
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Erben Yavuz, A. (2023). The effect of ESG scores on firm profitability: Case of Borsa Istanbul. Third Sector Social Economic Review, 58(3), 2686–2701.
Fayola, D. N. W. B., & Nurbaiti, A. (2020). Pengaruh ukuran perusahaan, konsentrasi kepemilikan, reputasi auditor dan risk management committee terhadap pengungkapan enterprise risk management [The effect of firm size, ownership concentration, auditor reputation, and risk management committee on enterprise risk management disclosure]. JIA Jurnal Ilmiah Akuntansi, 5(1), 1–24.
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Inyang, W., Effiong, C., Gabriel, F., Otiwa, J. O., Orok, A., Ahakiri, F., & Emori, E. (2026). Assessing the influence of debt discipline on the profitability of Nigerian manufacturing firms. Investment Management and Financial Innovations, 23(1), 434–446.
Kumar, P., & Firoz, M. (2022). Does accounting-based financial performance value environmental, social and governance (ESG) disclosures? A detailed note on a corporate sustainability perspective. Australasian Accounting, Business and Finance Journal, 16(1).
Maulana, M. K., & Sabrina, A. S. (2024). Pengaruh rasio utang terhadap ekuitas dan rasio lancar terhadap pengembalian aset PT. Sepatu Bata Tbk [The effect of the debt to equity ratio and current ratio on return on assets of PT Sepatu Bata Tbk]. Jurnal Manajemen Bisnis Krisnadwipayana, 12(3), 241–249.
Octavia, M., Cipta, W., & Yudiaatmaja, F. (2016). Pengaruh current ratio dan debt to equity ratio terhadap return on assets pada perusahaan consumer goods yang terdaftar di Bursa Efek Indonesia periode 2012–2014 [The effect of the current ratio and debt to equity ratio on return on assets in consumer goods companies listed on the Indonesia Stock Exchange for 2012–2014]. Jurnal Manajemen Indonesia, 4(1).
Oyewobi, I. A., & Adesoye, A. F. (2024). Efficiency management and financial performance of listed consumer goods firms in Nigeria. International Journal of Research and Innovation in Applied Science, 9(6), 171–184.
Priadi, F. R., & Wahyudi, H. D. (2026). Pengaruh environmental, social, and governance (ESG) score terhadap return on assets (ROA) [The effect of environmental, social, and governance (ESG) score on return on assets (ROA)]. Indonesian Journal of Digital Business, 4(1), 45–58.
Putri, A. I. N., Sukadwilinda, Wardini, A. P. K., & Ismail, M. T. (2026). Inventory turnover sebagai determinan return on assets pada perusahaan consumer non-cyclicals [Inventory turnover as a determinant of return on assets in consumer non-cyclicals companies]. Jurnal SIKAP, 10(2), 60–70.
Risal, R., Mustaruddin, M., & Afifah, N. (2024). ESG disclosure and company profitability: Does company size play a role? Journal of Enterprise and Development, 6(2).
Rousseeuw, P. J., & Leroy, A. M. (1987). Robust regression and outlier detection. John Wiley & Sons.
Sanga, M. H., Situmorang, R., Seik, M. F., Bangngu, S. A., & Taus, S. P. W. (2025). The effect of liquidity on the financial performance of companies in the property, real estate and building construction sectors listed on the Indonesia Stock Exchange in 2023. Science Journal Get Press, 2(1).
Sari, N., & Suryandani, A. (2023). Pengaruh rasio keuangan dan pengungkapan keberlanjutan terhadap profitabilitas perusahaan pertambangan [The effect of financial ratios and sustainability disclosure on the profitability of mining companies]. Jurnal Akuntansi dan Keuangan, 11(2), 145–158.
Sembiring, F., Utama, A. A. G. S., & Rismanty, V. (2024). Analisis kinerja keuangan terhadap return on assets pada emiten pertambangan di Indonesia [Analysis of financial performance and return on assets of mining issuers in Indonesia]. Jurnal Riset Akuntansi dan Bisnis, 14(1), 55–68.
Setiawati, A., & Hidayat, T. (2023). The influence of environmental, social, governance (ESG) disclosures on financial performance. Jurnal Ekonomi, Manajemen dan Perbankan, 9(3), 225–240.
Simon-Ilogho, B. E. (2025). Inventory turnover ratio and firm profitability: A study of listed agricultural firms in Nigeria. Humanities and Social Sciences Letters, 13(4), 1596–1614.
Sitepu, W. R. B. (2017). Pengaruh quick ratio, inventory turnover, dan debt to equity ratio terhadap profitabilitas pada perusahaan makanan dan minuman yang terdaftar di BEI periode 2012–2014 [The effect of quick ratio, inventory turnover, and debt to equity ratio on profitability in food and beverage companies listed on the IDX for 2012–2014]. Jurnal Mutiara Akuntansi, 2(1).
Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374.
Subhan, S. (2023). The effect of current ratio, inventory turnover, and debt to equity ratio on financial performance. International Journal of Economics, Business and Innovation Research, 2(1), 88–98.
Sukiyat, V. N. M., Supriadi, S., & Pratiwi, L. I. (2025). Pengaruh debt to equity dan current ratio terhadap return on asset [The effect of debt to equity and current ratio on return on assets]. Jurnal HARMONI: Jurnal Akuntansi dan Keuangan, 4(1), 11–18.
Sukmala, V. N., Saputro, D. F. H., Pamungkas, I. D., & Setyowati, L. (2026). The effect of current ratio and debt to equity ratio on return on assets in real estate companies listed on the IDX in 2020–2024. Al-Kharaj: Journal of Islamic Economic and Business, 8(3), 12160–12171.
Terdpaopong, K., Wegmann, G., Kraiwanit, T., Limna, P., & Rafiyya, A. (2024). Unveiling the influence of ESG disclosures on corporate profitability: Insights from Thailand’s publicly listed companies. Journal of Infrastructure, Policy and Development, 8(7), 4787.
Tulung, J. E., Sondakh, J. J., Wangke, S. J. C., & Posumah, R. F. K. (2024). Effects of capital ratio, quality of receivables, liquidity, and gearing ratio on profitability: A study financial institutions’ governance. Journal of Governance & Regulation, 13(3), 46–56.
Ulandari, S., Handayani, S., & Rahayu, R. (2025). Determination of profitability of coal mining companies: The role of leverage, liquidity, and sales growth. International Journal of Financial Studies, 13(1), 88–99.
Widyakto, A., Pradiptya, A., Kusumawati, C. A., & Fresiliasari, O. (2024). The role of ROA in mediating DER, current ratio, and TATO on firm value. Jurnal Penelitian Ekonomi dan Bisnis, 9(2), 114–128.
Wijaya, H. D., & Iryanto, B. W. (2024). The influence of corporate social responsibility (CSR) and environmental social governance (ESG) disclosure on profitability in companies in the IDX ESG & IDX HIDIV20 sector from 2020 to 2023. Jurnal Indonesia Sosial Sains, 5(11), 2828–2844.
Zahroh, F. (2019). Evaluasi penggunaan uji multikolinearitas dalam analisis regresi data panel [Evaluation of the use of multicollinearity tests in panel data regression analysis]. Jurnal Statistik dan Ekonomi, 4(2), 45–56.
Agustina, D., Marnisah, L., & Purnamasari, E. D. (2018). Pengaruh inventory turnover terhadap return on assets pada PT. Indofood CBP Sukses Makmur, Tbk tahun 2011–2015 [The effect of inventory turnover on return on assets at PT Indofood CBP Sukses Makmur, Tbk in 2011–2015]. Jurnal Ilmiah Ekonomi Global Masa Kini, 8(2), 79–84.
Ali, N. B. M., Ali Hussin, H. A. A., Mohammed, H. M. F., & Mohmmed, K. A. H. (2025). The effect of environmental, social, and governance (ESG) disclosure on the profitability of Saudi-listed firms: Insights from Saudi Vision 2030. Sustainability, 17(7), 2977. https://doi.org/10.3390/su17072977
Alnaim, M., & Kouaib, A. (2023). Inventory turnover and firm profitability: A Saudi Arabian investigation. Processes, 11(3), 716. https://doi.org/10.3390/pr11030716
Amaliah, E. N., Darnah, & Sifriyani. (2020). Regresi data panel dengan pendekatan Common Effect Model (CEM), Fixed Effect Model (FEM), dan Random Effect Model (REM) [Panel data regression with the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM) approaches]. Journal of Statistics and Its Application, 1(2), 106–115.
Amoa-Gyarteng, K., & Dhliwayo, S. (2022). The impact of capital structure on profitability of nascent small and medium enterprises in Ghana. African Journal of Business and Economic Research, 17(2), 275–291.
Atmaja, M. Z. S., & Muid, D. (2021). Pengaruh perputaran piutang, perputaran persediaan dan rasio lancar terhadap return on assets (Studi empiris pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2017–2019) [The effect of receivables turnover, inventory turnover, and current ratio on return on assets (Empirical study of manufacturing companies listed on the Indonesia Stock Exchange in 2017–2019)]. Diponegoro Journal of Accounting, 10(4).
Batubara, H. C. (2018). Influence of current ratio, inventory turnover, and debt to equity ratio to return on assets on property companies. International Conference of ASEAN Perspective and Policy, 1(1), 75–80.
CNBC Indonesia. (2025, September). Harga emas akhirnya tembus rekor US$3.800, tertinggi! [Gold finally breaks the US$3,800 record, the highest ever!]. CNBC Indonesia.
Erben Yavuz, A. (2023). The effect of ESG scores on firm profitability: Case of Borsa Istanbul. Third Sector Social Economic Review, 58(3), 2686–2701.
Fayola, D. N. W. B., & Nurbaiti, A. (2020). Pengaruh ukuran perusahaan, konsentrasi kepemilikan, reputasi auditor dan risk management committee terhadap pengungkapan enterprise risk management [The effect of firm size, ownership concentration, auditor reputation, and risk management committee on enterprise risk management disclosure]. JIA Jurnal Ilmiah Akuntansi, 5(1), 1–24.
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25 [Multivariate analysis applications with the IBM SPSS 25 program] (9th ed.). Badan Penerbit Universitas Diponegoro.
Ghozali, I., & Ratmono, D. (2017). Analisis multivariat dan ekonometrika: Teori, konsep, dan aplikasi dengan EViews 10 [Multivariate analysis and econometrics: Theory, concepts, and applications with EViews 10] (2nd ed.). Badan Penerbit Universitas Diponegoro.
IHS Markit. (2020). EViews 12 user’s guide II: Advanced single equation analysis. S&P Global.
Inyang, W., Effiong, C., Gabriel, F., Otiwa, J. O., Orok, A., Ahakiri, F., & Emori, E. (2026). Assessing the influence of debt discipline on the profitability of Nigerian manufacturing firms. Investment Management and Financial Innovations, 23(1), 434–446.
Kumar, P., & Firoz, M. (2022). Does accounting-based financial performance value environmental, social and governance (ESG) disclosures? A detailed note on a corporate sustainability perspective. Australasian Accounting, Business and Finance Journal, 16(1).
Maulana, M. K., & Sabrina, A. S. (2024). Pengaruh rasio utang terhadap ekuitas dan rasio lancar terhadap pengembalian aset PT. Sepatu Bata Tbk [The effect of the debt to equity ratio and current ratio on return on assets of PT Sepatu Bata Tbk]. Jurnal Manajemen Bisnis Krisnadwipayana, 12(3), 241–249.
Octavia, M., Cipta, W., & Yudiaatmaja, F. (2016). Pengaruh current ratio dan debt to equity ratio terhadap return on assets pada perusahaan consumer goods yang terdaftar di Bursa Efek Indonesia periode 2012–2014 [The effect of the current ratio and debt to equity ratio on return on assets in consumer goods companies listed on the Indonesia Stock Exchange for 2012–2014]. Jurnal Manajemen Indonesia, 4(1).
Oyewobi, I. A., & Adesoye, A. F. (2024). Efficiency management and financial performance of listed consumer goods firms in Nigeria. International Journal of Research and Innovation in Applied Science, 9(6), 171–184.
Priadi, F. R., & Wahyudi, H. D. (2026). Pengaruh environmental, social, and governance (ESG) score terhadap return on assets (ROA) [The effect of environmental, social, and governance (ESG) score on return on assets (ROA)]. Indonesian Journal of Digital Business, 4(1), 45–58.
Putri, A. I. N., Sukadwilinda, Wardini, A. P. K., & Ismail, M. T. (2026). Inventory turnover sebagai determinan return on assets pada perusahaan consumer non-cyclicals [Inventory turnover as a determinant of return on assets in consumer non-cyclicals companies]. Jurnal SIKAP, 10(2), 60–70.
Risal, R., Mustaruddin, M., & Afifah, N. (2024). ESG disclosure and company profitability: Does company size play a role? Journal of Enterprise and Development, 6(2).
Rousseeuw, P. J., & Leroy, A. M. (1987). Robust regression and outlier detection. John Wiley & Sons.
Sanga, M. H., Situmorang, R., Seik, M. F., Bangngu, S. A., & Taus, S. P. W. (2025). The effect of liquidity on the financial performance of companies in the property, real estate and building construction sectors listed on the Indonesia Stock Exchange in 2023. Science Journal Get Press, 2(1).
Sari, N., & Suryandani, A. (2023). Pengaruh rasio keuangan dan pengungkapan keberlanjutan terhadap profitabilitas perusahaan pertambangan [The effect of financial ratios and sustainability disclosure on the profitability of mining companies]. Jurnal Akuntansi dan Keuangan, 11(2), 145–158.
Sembiring, F., Utama, A. A. G. S., & Rismanty, V. (2024). Analisis kinerja keuangan terhadap return on assets pada emiten pertambangan di Indonesia [Analysis of financial performance and return on assets of mining issuers in Indonesia]. Jurnal Riset Akuntansi dan Bisnis, 14(1), 55–68.
Setiawati, A., & Hidayat, T. (2023). The influence of environmental, social, governance (ESG) disclosures on financial performance. Jurnal Ekonomi, Manajemen dan Perbankan, 9(3), 225–240.
Simon-Ilogho, B. E. (2025). Inventory turnover ratio and firm profitability: A study of listed agricultural firms in Nigeria. Humanities and Social Sciences Letters, 13(4), 1596–1614.
Sitepu, W. R. B. (2017). Pengaruh quick ratio, inventory turnover, dan debt to equity ratio terhadap profitabilitas pada perusahaan makanan dan minuman yang terdaftar di BEI periode 2012–2014 [The effect of quick ratio, inventory turnover, and debt to equity ratio on profitability in food and beverage companies listed on the IDX for 2012–2014]. Jurnal Mutiara Akuntansi, 2(1).
Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374.
Subhan, S. (2023). The effect of current ratio, inventory turnover, and debt to equity ratio on financial performance. International Journal of Economics, Business and Innovation Research, 2(1), 88–98.
Sukiyat, V. N. M., Supriadi, S., & Pratiwi, L. I. (2025). Pengaruh debt to equity dan current ratio terhadap return on asset [The effect of debt to equity and current ratio on return on assets]. Jurnal HARMONI: Jurnal Akuntansi dan Keuangan, 4(1), 11–18.
Sukmala, V. N., Saputro, D. F. H., Pamungkas, I. D., & Setyowati, L. (2026). The effect of current ratio and debt to equity ratio on return on assets in real estate companies listed on the IDX in 2020–2024. Al-Kharaj: Journal of Islamic Economic and Business, 8(3), 12160–12171.
Terdpaopong, K., Wegmann, G., Kraiwanit, T., Limna, P., & Rafiyya, A. (2024). Unveiling the influence of ESG disclosures on corporate profitability: Insights from Thailand’s publicly listed companies. Journal of Infrastructure, Policy and Development, 8(7), 4787.
Tulung, J. E., Sondakh, J. J., Wangke, S. J. C., & Posumah, R. F. K. (2024). Effects of capital ratio, quality of receivables, liquidity, and gearing ratio on profitability: A study financial institutions’ governance. Journal of Governance & Regulation, 13(3), 46–56.
Ulandari, S., Handayani, S., & Rahayu, R. (2025). Determination of profitability of coal mining companies: The role of leverage, liquidity, and sales growth. International Journal of Financial Studies, 13(1), 88–99.
Widyakto, A., Pradiptya, A., Kusumawati, C. A., & Fresiliasari, O. (2024). The role of ROA in mediating DER, current ratio, and TATO on firm value. Jurnal Penelitian Ekonomi dan Bisnis, 9(2), 114–128.
Wijaya, H. D., & Iryanto, B. W. (2024). The influence of corporate social responsibility (CSR) and environmental social governance (ESG) disclosure on profitability in companies in the IDX ESG & IDX HIDIV20 sector from 2020 to 2023. Jurnal Indonesia Sosial Sains, 5(11), 2828–2844.
Zahroh, F. (2019). Evaluasi penggunaan uji multikolinearitas dalam analisis regresi data panel [Evaluation of the use of multicollinearity tests in panel data regression analysis]. Jurnal Statistik dan Ekonomi, 4(2), 45–56.
Published
2026-11-10
How to Cite
Dalvin Mugito, & Henryanto Wijaya. (2026). Unveiling Mining Profitability: The Interplay of Financial Metrics and ESG Disclosures (2023–2025). International Journal of Economics, Business and Innovation Research, 5(06), 3401-3421. https://doi.org/10.63922/ijebir.v5i06.7432
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