Pengaruh Current Ratio, Debt To Equity Ratio, Net Profit Margin, dan Total Asset Turnover terhadap Return On Aset

Studi Empiris pada Perusahaan Sub Sektor Mesin dan Alat Berat yang terdaftar di Bursa Efek Indonesia Periode 2018-2024

Abstract

This research aims to determine the effect of the Current Ratio, Debt to Equity Ratio, Net Profit Margin, and Total Asset Turnover on Return On Assets (ROA) in manufacturing companies within the Industrial Machinery and Heavy Equipment sub-sector listed on the Indonesia Stock Exchange for the period 2018 – 2024. The study utilized secondary data in the form of annual financial statements from 9 companies in the machinery and heavy equipment sub-sector. These companies were selected using the purposive sampling technique based on specific criteria. The research applied a multiple linear regression model, with data processed using IBM SPSS version 25. The findings show that, partially, the Current Ratio has a positive and significant effect on Return On Assets, indicating that better liquidity management improves asset returns. The Debt to Equity Ratio, however, showed no significant impact on Return On Assets, suggesting that financial leverage does not strongly influence the return generated from assets in these companies. The Net Profit Margin was found to have a positive and significant effect on Return On Assets, meaning that higher profitability directly enhances asset performance. Similarly, Total Asset Turnover has a positive and significant impact on Return On Assets, indicating that efficient asset utilization leads to higher returns. The study highlights key financial indicators for improving asset returns in manufacturing companies within the sub-sector.