The purpose of this research is to obtain empirical evidence about the effect of sales growth, total asset  turnover, liquidity, and institutional ownership on capital structure. An optimal capital structure is able  to create a company with strong and stable financial performance. Errors in determining the capital  structure will have a significant impact on the company. The research object is manufacturing  companies consecutively listed on Indonesia Stock Exchange (IDX) for the period 2018-2020. The  sample in this research was selected using a purposive sampling method and the data used in this  research were analyzed using the multiple regression method. The results were (1) sales growth has no  negative effect on capital structure, (2) total asset turnover has a positive significant effect on capital  structure, (3) liquidity has a negative significant effect on capital structure, (4) institutional ownership  has a negative significant effect toward capital structure, and (5) sales growth, total asset turnover,  liquidity, and institutional ownership simultaneously have a significant effect towards the capital  structure. Taken together, management needs to pay attention to the liquidity of the company and  encourages institutional parties to more contribute in the company’s funding policy