Publisher

UNNARUNNAR

Journal IJEBD (International Journal of Entrepreneurship and Business Development)IJEBD (International Journal of Entrepreneurship and Business Development) Abstract

This studys aim is to do an analysis on the effect of current ratio along with debt to equity ratio on return on assets in the property and real estate sub-sector that is on Indonesia Stock Exchanges (IDX) list during 2020-2023, with the moderating variable being company size. Quantitative research methods were implemented for this study, with a causal associative approach. Moderated Regression Analysis (MRA) was applied as the technique for data analysis, with Eviews statistical software utilized. The findings revealed that current ratio as well as debt to equity ratio impact return on assets significantly. This means that an increased liquidity, along with the proportion of debt can reduce the efficiency and profitability of the company. Company size strengthens the effect by functioning as a moderating variable. This research only focuses on the real estate and property sub-sector that is on IDXs list during 2020-2023. Therefore, this studys results may not be generalizable to different sectors or periods.

Conclusion

The study concludes that the Current Ratio (CR) significantly impacts Return on Assets (ROA), with increased liquidity potentially decreasing ROA due to lower asset utilization efficiency.Furthermore, the Debt to Equity Ratio (DER) also significantly affects ROA, as higher debt proportions can reduce company profitability due to increased financial risks.Finally, company size moderates the relationship between liquidity and profitability, as well as leverage and profitability, suggesting larger firms can better manage liquidity and debt to improve financial performance.

Future Research

Penelitian selanjutnya dapat dilakukan dengan memperluas cakupan sektor industri untuk menguji generalisasi temuan penelitian ini, sehingga dapat memberikan gambaran yang lebih komprehensif mengenai pengaruh rasio keuangan terhadap profitabilitas di berbagai sektor ekonomi. Selain itu, penelitian di masa depan dapat menggabungkan variabel-variabel lain yang berpotensi memengaruhi ROA, seperti faktor makroekonomi (misalnya, suku bunga, inflasi, nilai tukar) atau karakteristik perusahaan (misalnya, struktur kepemilikan, kualitas manajemen) untuk mendapatkan model yang lebih akurat dan komprehensif. Terakhir, penelitian lanjutan dapat mengeksplorasi secara lebih mendalam mekanisme bagaimana ukuran perusahaan memoderasi hubungan antara rasio keuangan dan ROA, misalnya dengan menganalisis peran ukuran perusahaan dalam memengaruhi akses terhadap pendanaan, efisiensi operasional, atau pengambilan keputusan investasi.

References

1. Pengaruh Current Ratio dan Debt to Equity Ratio terhadap Return on Asset Studi pada Perusahaan Pt. Wijaya... openjournal.unpam.ac.id/index.php/JIPER/article/view/39694Pengaruh Current Ratio dan Debt to Equity Ratio terhadap Return on Asset Studi pada Perusahaan Pt Wijaya openjournal unpam ac index php JIPER article view 39694
2. Pengaruh Likuiditas Terhadap Profitabilitas Dengan Ukuran Perusahaan Sebagai Variabel Moderasi | Jurnal... doi.org/10.47709/jebma.v3i3.3141Pengaruh Likuiditas Terhadap Profitabilitas Dengan Ukuran Perusahaan Sebagai Variabel Moderasi Jurnal doi 10 47709 jebma v3i3 3141
3. Determinan Kinerja Keuangan dengan Size sebagai Pemoderasi pada Perusahaan Food and Beverages yang Terdaftar... journal.ipm2kpe.or.id/index.php/JOMB/article/view/4509Determinan Kinerja Keuangan dengan Size sebagai Pemoderasi pada Perusahaan Food and Beverages yang Terdaftar journal ipm2kpe index php JOMB article view 4509

Metadata

File size	346.58 KB
Pages	9
DMCA	Report