Operating Profit Margin, Financial Leverage, and Return on Invested Capital's Effects on the Profitability of Firm in Jordan's Industrial Sector

Abstract

The study sought to clarify the determinants affecting the financial performance of industrial sector companies listed on the Amman Stock Exchange for the years 2017-2021, where information related to the company's performance, especially its profitability, is valuable to support administrative provisions regarding expected changes in the company's future control over economic resources. The research has used the E-Views 12 program for data processing and panel data regression processing to examine the influence of operating profit margin, financial leverage, and return on invested capital. The results indicate that both return on invested capital and operating profit margin have a positive effect on profitability. Financial leverage does not have a positive effect on profitability.

Received: 30 November 2024 / Accepted: 5 January 2025 / Published: 11 January 2025