The Effect of Debt to Equity Ratio and Current Ratio on Return on Assets Ratio at PT Wilmar Cahaya Indonesia Tbk for the 2014-2023 Period
DOI:
https://doi.org/10.58174/ijqmr.v1i2.22Keywords:
Debt to Equity Ratio; Current Ratio; Return on Assets Ratio.Abstract
The purpose of this study is to determine the effect of Debt to Equity Ratio and Current Ratio on Return on Assets Ratio at PT Wilmar Cahaya Indonesia Tbk for the 2014-2023 Period. The method used is quantitative. The sampling technique used saturated sampling and obtained a sample of 10 years, namely the financial statements of PT Wilmar Cahaya Indonesia Tbk for the 2014-2023 period. Data analysis uses descriptive analysis, classical assumption test, regression analysis, correlation coefficient, determination coefficient and hypothesis test. The population in this study is a 10-year panel financial statement. Methods of data collection observation, documentation and literature study. The result of this study is that the Debt to Equity Ratio has a significant effect on the Return on Assets Ratio as evidenced by the hypothesis test obtained by t calculation of > t table or (7.341 > 2.365). The Current Ratio has a significant effect on the Return on Assets Ratio as evidenced by the hypothesis test obtained by t calculated > t table or (1.643 > 2.365). Debt to Equity Ratio and Current Ratio simultaneously have a significant effect on the Return on Assets Ratio with a regression equation Y = 0.916 + 2.162X1 + 0.003X2, nii the determination coefficient is 89.3% while the remaining 10.7% is influenced by other factors. The hypothesis test obtained an F value calculated > F table or (29.344 > 4.737).
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