Open AccessPengaruh Debt to Equity Ratio, Total Assets Turnover, Firm Size, dan Current Ratio terhadap Return on Assets
Author(s) -
Aurick Chandra,
Felicia Vanessa Wijaya,
Angelia,
Keumala Hayati
Publication year - 2021
Publication title -
jurnal akuntansi keuangan dan manajemen
Language(s) - English
Resource type - Journals
ISSN - 2716-0807
DOI - 10.35912/jakman.v2i1.135
Subject(s) - return on assets , current ratio , debt to equity ratio , return on equity , asset turnover , weighted average return on assets , debt ratio , business , stock exchange , inventory turnover , current asset , book value , current liability , equity ratio , working capital , monetary economics , debt , economics , finance , nonprobability sampling , population , demography , earnings , sociology
Purpose: This study aimed to examine and analyze the effects of the Debt to Equity Ratio (DER), Total Assets Turnover (TATO), firm size, and Current Ratio (CR) on Return on Assets (ROA) on the manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2019
Research methodology: This research approach used quantitative research with descriptive research type. The research sample was determined by purposive sampling method to obtain 93 manufacturing companies listed on the Indonesia Stock exchange in 2017-2019.
Results: The study results with simultaneous hypothesis testing showed that the Debt to Equity Ratio, Total Assets Turnover, firm size, and Current Ratio had a significant influence on the Return on Assets. Partial testing of the hypothesis showed that the Debt to Equity Ratio had a negative influence and significant on the Return on Assets. Total assets turnover and firm size had a positive influence and significance on the Return on Assets. However, the Current Ratio had no influence and was not significant on the Return on Assets.
Limitations: The use of historical data and variables was limited, only three years and five variables.
Contribution: This research can be used for adding knowledge in the financial field, especially for those who want to invest in a company by seeing the Return on Assets ratio.
Keywords: Debt to Equity Ratio (DER), Total Assets Turnover (TATO), Firm Size, Current Ratio (CR), Return on Assets (ROA)