The Role of Liquidity in Moderating the Relationship between Capital Structure and Financial Performance (Empirical Study on Industrial Companies for the Period 2018-2022 Listed on the IDX)

In December 2023, Indonesia recorded a significant surplus thanks to strong export performance, despite facing global challenges. The government's downstream policy encourages this increase. This study analyzes the influence of Capital Structure on the Financial Performance of industrial companies listed on the Indonesia Stock Exchange. With a quantitative approach and Purposive Sampling technique, we collected 120 observational data and used Moderation Regression Analysis (MRA). The results show that Capital Structure, measured by Debt to Equity Ratio (DER), has a significant effect on Financial Performance, measured by Return on Equity (ROE). Liquidity, measured by the Current Ratio (CR), reinforces the influence of DER on ROE. Investors are advised to pay attention to capital structure and liquidity, as these two variables are simultaneously significant in affecting the company's financial performance.