THE EFFECT OF CURRENT RATIO (CR) AND DEBT TO EQUITY RATIO (DER) ON RETURN ON ASSETS (ROA) IN PROPERTY AND REAL ESTATE SUB-SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX) FOR THE PERIOD 2021-2025

Lesti  Mutia; Didin Rasyidin Wahyu; Ombi Romli

doi:10.53067/ije3.v6i2.509

Authors

Lesti Mutia Universitas Bina Bangsa
Didin Rasyidin Wahyu Universitas Bina Bangsa
Ombi Romli Universitas Bina Bangsa

DOI:

https://doi.org/10.53067/ije3.v6i2.509

Keywords:

Return On Assets (ROA), Current Ratio (CR), and Debt to Equity Ratio (DER), Return on Assets (ROA), Rasio Berjalan (CR), dan Rasio Utang terhadap Ekuitas (DER)

Abstract

Profitability is an important indicator for assessing a company's financial performance. Return on Assets (ROA) measures a company's ability to generate profits from its assets. This study analyzes the impact of the Current Ratio (CR) and Debt to Equity Ratio (DER) on ROA in property and real estate companies in Indonesia from 2021 to 2025. This study aims to find out the effect of the Current Ratio (CR) on Return on Assets (ROA), the effect of the Debt to Equity Ratio (DER) on Return on Assets (ROA), and the combined effect of CR and DER on ROA. This study uses a quantitative method and an associative approach. Secondary data were taken from the financial reports of property companies on the Indonesia Stock Exchange for the 2021–2025 period. Sampling was carried out using purposive sampling, and data analysis was carried out using multiple linear regression in SPSS. The research results show that the Current Ratio (CR) and Debt to Equity Ratio (DER) affect Return on Assets (ROA) in property and real estate sub-sector companies on the Indonesia Stock Exchange from 2021–2025. Based on the research results, it can be concluded that the Current Ratio (CR) and Debt to Equity Ratio (DER) are factors that influence Return on Assets (ROA). Therefore, companies need to maintain their liquidity levels and manage their capital structure optimally to boost profitability and support the company's financial performance.

Downloads

Download data is not yet available.

References

Andika, D., Lidya, V., & Pasaribu, D. (2022). The effect of working capital turnover and current ratio (CR) on return on assets (ROA). Tambusai Education Journal, 6(1), 1834–1845.

Bere, M. Y., & Winarsa, H. (2024). The effect of current ratio and debt to equity ratio on return on assets. PERKUSI Scientific Journal, 4(2), 243–253.

Ghozali, I. (2021). Multivariate analysis application with IBM SPSS 26 program. Badan Penerbit Universitas Diponegoro.

Kasmir. (2019). Financial report analysis. Rajawali Pers.

Oktavira, R. (2023). The effect of current ratio, debt to equity ratio, total asset turnover, and firm size on profitability. Oikos, 7(1), 62–71.

PT Indonesia Stock Exchange. (2026). Financial and annual reports of listed companies. https://www.idx.co.id/id/perusahaan-tercatat/laporan-keuangan-dan-tahunan

Susilawati, D., Agusetiawan Shavab, F., & Mustika, M. (2022). The effect of debt to equity ratio and current ratio on return on assets. Journal of Applied Business, Taxation and Economics Research, 1(4), 325–337.