Determinan Return On Aset

(Studi Kasus Pada Perusahaan Sub Sektor Produk Rumah Tangga Tidak Tahan Lama Yang Terdaftar Di Bursa Efek Indonesia Periode Penelitian 2018-2022)

Abstract

The non-durable household products industry, particularly the beauty and personal care segment in Indonesia, has experienced significant growth, increasing competition and requiring companies to strengthen their financial performance to improve profitability. This study aims to examine the influence of Current Ratio, Firm Size, Debt to Asset Ratio, and Debt to Equity Ratio on Return on Assets (ROA) in Non-Durable Household Products Sub-Sector companies listed on the Indonesia Stock Exchange during 2018–2022. This descriptive quantitative research applied a purposive sampling technique and obtained 40 observations from 8 companies, with data collected through financial report documentation and analyzed using descriptive statistics, classical assumption tests, and multiple linear regression with SPSS version 25. The results indicate that Current Ratio, Debt to Asset Ratio, and Debt to Equity Ratio have no significant effect on ROA, while Firm Size shows a significant effect. Simultaneously, the four variables influence ROA. The implication of this study highlights the importance for companies to optimize firm size and financial structure management to enhance profitability and maintain competitiveness in the growing industry.