Open AccessThe Influence of Current Ratio, Quick Ratio and Net Profit Margin on Return on Investment at PT. Telekomunikasi Indonesia (Tbk)
Author(s) -
Neneng Susanti
Publication year - 2020
Publication title -
pinisi discretion review
Language(s) - English
Resource type - Journals
eISSN - 2580-1317
pISSN - 2580-1309
DOI - 10.26858/pdr.v1i1.13387
Subject(s) - profit margin , current ratio , return on investment , statistical significance , investment (military) , econometrics , financial ratio , operating margin , rate of return , net profit , statistical hypothesis testing , profit (economics) , statistics , economics , business , mathematics , return on assets , finance , profitability index , microeconomics , politics , political science , law
Financial management is very influential on the continuity of activities and the existence of a company and also affects every individual in the company. This study aims to determine the effect of the current ratio, quick ratio and net profit margin on return on investment at PT. Telekomunikasi Indonesia (Tbk) 2014-2018. The method used is explanatory research with a sample of 5 years of financial statements that have been made panel data. The analysis technique uses statistical analysis with regression testing, correlation, determination, and hypothesis testing. The results of this study the current ratio does not significantly influence the return on investment of 50.7%, the hypothesis test obtained a significance of 0.177> 0.05. The quick ratio does not significantly influence the return on investment of 51.4%, the hypothesis test obtained significance of 0.173> 0.05. Net profit margin has a significant effect on the return on investment of 86.6%, hypothesis testing obtained significance of 0.022 9,280..