The Impact of Company's Cash Reserves on Financial Leverage Consumer Cyclicals and Non-Cyclicals Sector on the Indonesia Stock Exchange

The decision to leverage companies as cash reserves advance business processes is widely practiced by in developing countries. Leverage describes a company's ability use funds that have fixed burden increase the level of income for owner company. In addition, used measure pay all its obligations, both short-term and long-term, if company dissolved or expanded. purpose this study see effect financial on reserves. independent variable leverage. dependent variables are reserves, while control consist operating flow, liquidity, capital expenditures, flow volatility, dividends, size, life, return assets, tobin's q. This was conducted collecting data from 253 Consumer Cyclicals non-Cyclicals sector Indonesia within span 7 years (2015-2021) using panel regression model testing. results presented leverage, measured book negatively affects lower debt level, higher vice versa. novelty it adds Debt-to-equity ratio one considered be related implication research has been carried out provide direction managers monitoring risks managing also assess contribution losses impact will obtained each factor supports