Abstract

This study aims to analyze whether there are simultaneous effects of Current Ratio, Debt to Equity Ratio, and Total Asset Turnover to Pofitability (Return On Asset) on Transportation Company Listed at Indonesia Stock Exchanged. This research use quantitative method. The population on this research is transportation companies listed at Indonesia Stock Exchange (IDX) and continuously published financial reports in 2014-2018. Based on the purposive sampling method, from 71 transportation companies globally converged into 10 transportation companies, so that the data obtained were 50 observation. The analytical method used is multiple linear regression analysis. The results of the study are Current Ratio and Debt to Equity Ratio does not partially affect ROA, while Total Asset Turnover has a partial effect on ROA. And the three independent variables (CR, DER and TATO) simultaneously influence the dependent variable, namely profitability (ROA)

Highlights

  • The development of transportation company nowadays colored by increasing intense competition between providers

  • DoesCurrent Ratio, Debt to Equity Ratio and Total Asset Turnover simultaneously influencing the profitability of trasnportation companies listed on the Indonesia Stock Exchange in 2014-2018?

  • H2: Debt to Equity Ratio has a positive and significant influence on profitability of transportation companies listed on the Indonesia Stock Exchange in 20142018

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Summary

Introduction

The development of transportation company nowadays colored by increasing intense competition between providers. Liquidity Ratio is the most widely used on financial statement analysis technique. This ratio is an analytical tool that can be provide a way out and describe the symptoms (visible symptoms) of a situation. Ratio analysis can reveal relationships and at the same time become a basis for comparison that shows conditions or trends that cannot be detected if we only see the ratio component itself. This ratio analysis aims to assess the effectiveness of decisions that have been taken by the company in order to carry out its business activities. Ratio analysis of financial statements commonly used is liquidity ratio analysis, solvability ratio analysis, activity ratio analysis and profitability ratio analysis

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