THE EFFECT OF CURRENT RATIO AND TOTAL ASSET TURNOVER ON FINANCIAL PERFORMANCE AT PT METRODATA ELECTRONICS TBK FOR THE PERIOD 2017-2024

Abstract

This study aims to determine the effect of Current Ratio (CR) and Total Asset Turnover (TATO) on Return on Assets (ROA) as a financial performance indicator in technology companies in the hardware, technology equipment, and components sub-sector listed on the Indonesia Stock Exchange (IDX) for the period 2017–2024. This study uses a quantitative approach with secondary data obtained from the annual financial reports of PT Metrodata Electronics Tbk. The population in this study includes all technology companies in the sub-sector, and the sampling technique uses saturated sampling, where all members of the population are used as research samples. The variables used include Current Ratio (CR) as a measure of liquidity, Total Asset Turnover (TATO) as a measure of activity, and Return on Assets (ROA) as a measure of profitability. Data analysis was performed using multiple linear regression and classical assumption tests using the SPSS program. The results showed that the Current Ratio did not have a significant effect on Return on Assets, with a significance value of 0.969 > 0.05. Similarly, Total Asset Turnover also did not have a significant effect on Return on Assets, with a significance value of 0.593 > 0.05. Simultaneously, both variables did not have a significant effect on the company's financial performance with a significance value of 0.806 > 0.05. This indicates that the level of liquidity and effectiveness of asset utilization has not yet been optimal.