Effects Of Current Ratio And Debt-To-Equity Ratio On Return On Asset And Return On Equity
Journal Title: International Journal of Business and Management Invention - Year 2018, Vol 7, Issue 12
Abstract
The purpose of a company is to gain profits. The purpose of the present study was to examine the effects of current ratio and debt-to-equity ratio on return on asset and return on equity for companies of the food and noodle sub-sector. A total of 10 companies listed on the Indonesia Stock Exchange (ISX) was sampled from 2014 to 2017. Data were processed using the multiple linear regression analysis with SPSS 24. Results showed that current ratio and debt-to-equity ratio had a significant effect on return on equity and return on asset. Results of the regression coefficient analysis showed that current ratio and debt-to-equity ratio accounted for 14.9% of ROA, while the remaining 85.1% was explained by other variables, as indicated by the coefficient determinants. The regression coefficient analysis for ROE showed that 61.4% was explained by other variables not studied in this research. Results of the F-test showed a significance value of 0.019 < 0.05 for ROA and 0.000 < 0.05 for ROE, meaning that both the current ratio and debt-to-equity ratio had a significant effect on ROA and ROE in food and beverage industry companies listed in Indonesia Stock Exchange.
Authors and Affiliations
Lusy . , Y. Budi Hermanto, Thyophoida W. S. Panjaitan, Maria Widyastuti
Keywords
Related Articles
- EP ID EP422662
- DOI -
- Views 147
- Downloads 0
The Use Of volunteer Smartphone Application (VSP) As A Distributor Of Information Among People With Perak RMP
The development of communication has opened a new chapter in human relationships and led to changes in communication. Appropriate communication will affect the implementation of information dissemination tasks in achievi...
Building Customer Loyalty towardthe Service Industry – An overview
Building customer loyalty towards the organization, brand and specific service provider is critical and crucial to the objective of survival and growth of business organizations. Therefore, this field of science has gain...
Effect of Participation (Ksm), Self - Suporting Agencies Society Performance (Bkm), Management Revolving Fund And The Level Of Success Project Self Pnpm Urban
Community Self-Reliance Agency (BKM) is needed is a competent self-supporting agencies, for a success rate of PNPM Urban influenced by the participation of the community in the planning process, community self-supporting...
A StudyOn BehaviourOf Market Arrivals And Prices Of Selected CerealsIn Mysore Region
In this study Mysore’s Inconsistent behaviourpattern of the market arrivals and prices of selected cereals i.e. Paddy, Ragi, Jowar, and Maize are considered as the primary objective followed by its relationship as a seco...
A Study On Stress At Workplace With Reference To Axles India Limited
The aim of this paper is to study the stress level of employees at work place and employees’ satisfaction towards the management practices and work stress. Suggestions and recommendation are also given to further to redu...