THE EFFECT OF CURRENT RATIO AND DEBT TO EQUITY RATIO ON RETURN ON ASSETS AT PT ELECTRONIC CITY INDONESIA TBK FOR THE PERIOD (2015-2024)

Abstract

This study aims to analyze the effect of Current Ratio (CR) and Debt to Equity Ratio (DER) on Return on Assets (ROA) at PT Electronic City Indonesia Tbk for the period 2015–2024. The research method used is a quantitative approach with an associative research type. The data used is secondary data obtained from the company's annual financial reports and publications from the Indonesia Stock Exchange (IDX). The analysis techniques used include descriptive statistical analysis, classical assumption tests, multiple linear regression analysis, and hypothesis testing (t-test and F-test) with the help of SPSS version 26 software. The results show that, partially, the Current Ratio (CR) does not have a significant effect on Return on Assets (ROA), with a significance value of 0.580 > 0.05. Similarly, the Debt to Equity Ratio (DER) does not have a significant effect on Return on Assets (ROA), with a significance value of 0.452 > 0.05. Simultaneously, CR and DER also had no significant effect on ROA, as evidenced by a calculated F value of 0.379 < F table 4.46 and a significance value of 0.698 > 0.05. The coefficient of determination (R²) value of 0.098 indicates that CR and DER can only explain 9.8% of the variation in ROA, while the remaining 90.2% is influenced by other factors outside the research model. Thus, it can be concluded that liquidity and capital structure are not yet dominant factors in determining the profitability of PT Electronic City Indonesia Tbk during the research period.