Pengaruh Current Ratio, Long Term Debt To Equity Ratio dan Total Asset Turnover terhadap Return On Equity pada Perusahaan yang Terdaftar di Jakarta Islamic Index

Abstract

His study was conducted to determine the effect of the Current Ratio, Long-Term Debt-to-Equity Ratio, and Total Asset Turnover on Return on Equity for companies listed on the Jakarta Islamic Index. The study population consisted of 12 companies over a 3-year observation period, yielding a total of 36 observations. The analysis methods used were multiple linear regression and hypothesis testing using the t-test partially and the F-test simultaneously, as well as the coefficient of determination (R²). The results of the t-test indicate that the Current Ratio has no partial effect on Return on Equity, with t-calculated < t-table (1.205 < 2.03693) and a significance value of 0.237 > 0.05. The Long-Term Debt-to-Equity Ratio has no partial effect on Return on Equity, with t-calculated < t-table (-0.323 < -2.03693) and a significance value of 0.749 > 0.05. Total Asset Turnover has no partial effect on Return on Equity, with -t-calculated < -t-table (-0.817 < -2.03693) and a significance value of 0.420 > 0.05. Simultaneously, the Current Ratio, Long-Term Debt-to-Equity Ratio, and Total Asset Turnover do not have a significant effect on Return on Equity. These results are evident in the calculated t-value < critical t-value (-0.817 < -2.03693) with a significance level of 0.420 > 0.05. The coefficient of determination in this study is 18%, meaning that ROE is influenced by the independent variables by 18%. The remaining 82% is influenced by other independent variables outside the scope of this study.