Debt To Asset Ratio Research Articles

Examining the Impact of Capital Structure on the Profitability of the Saudi Banking Sector: A Panel Least Squares (PLS) Approach

This study examines the influence of capital structure and other financial variables on the profitability of Saudi Arabia's banking sector during the period 2010 to 2021. The author used a panel least squares (PLS) model, utilizing 96 observations derived from eight banks. Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER), Financial Leverage (FL), Net Income (NI), Interest Expended to Interest Earned (IEIE), and Interest Income to Total Fund (IITF) are some of the independent variables that affect Rate of Return on Assets (ROA). The findings reveal that DAR positively impacts profitability and reflects effective debt utilization within assets, while DER negatively affects profitability due to the risks of excessive reliance on equity-financed debt. FL also has a strong positive influence, emphasizing the importance of leverage, and NI, though marginally impactful, contributes positively. IEIE shows a slight positive effect, indicating the need for efficient cost management, whereas IITF exhibits a negative but insignificant relationship, suggesting inefficiencies in interest income during the period. The model explains 83.1% of the variation in ROA, emphasizing the collective relevance of these factors. The study underscores the importance of balanced debt and equity management, efficient use of financial instruments, and cost optimization to enhance profitability and sustain financial stability in Saudi banks.

The Moderating Role of Firm Size: Pengaruh Capital Structure, Current Ratio dan Profitability Terhadap Company Value

This study examines company value with firm size moderation in property and real estate companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2023 period. The sample consists of 38 companies per year, selected using the purposive sampling method, resulting in a total of 152 data points over four years. The research variables include Debt to Asset Ratio (DAR), Current Ratio (CR), Return on Assets (ROA), firm size (log of total assets), and company value (Tobin's Q). Multiple linear regression analysis is employed to assess the impact of independent variables on company value, while Moderated Regression Analysis (MRA) is used to evaluate the moderating role of firm size. The findings indicate that capital structure, current ratio, and profitability positively and significantly affect company value. Firm size is shown to moderate the relationship between capital structure and current ratio with company value but does not moderate the relationship between profitability and company value. The study recommends expanding the data and research period and exploring other moderating variables to provide deeper insights into the factors influencing company value.

Analisis Rasio Keuangan Sebagai Tolak Ukur Peringkat Kinerja Keuangan Studi Kasus PDAM Tirta Pakuan Bogor Periode 2018 – 2022

Financial performance is a measure of the effectiveness and efficiency in utilizing the financial resources of an entity to achieve predetermined goals. PDAM Tirta Pakuan Bogor, a regional service company in the city of Bogor, serves as the primary distributor, ensuring the availability of drinking water for the local community. Therefore, financial performance analysis is crucial as a tool for information and joint evaluation for PDAM Tirta Pakuan. The quantitative analysis in this study employs several ratios with the following results: Profitability - Return On Equity (ROE): 9% (Not Good), Return On Asset (ROA): 7% (Not Good). Liquidity - Cash Ratio: 149% (Excellent), Current Ratio: 154% (Excellent). Operating Ratio - Operating Ratio: 154% (Excellent), Operating Profit Margin Ratio: 30% (Less than optimal). Activity Ratio - Receivable Turnover: 85% (Excellent), Bad Debt To Sales: 13% (Not Good). Solvency - Debt To Equity Ratio (DER): 35% (Low), Debt To Assets Ratio (DAR): 27% (Less than optimal). Based on the ratio rating indicators from the BUMD 2020 Performance Book according to Domestic Decision No. 47 of 1999, 2020, the financial performance of PDAM Tirta Pakuan is deemed "Very Good." This analysis provides essential information for PDAM Tirta Pakuan in conducting evaluation and improvements to enhance its financial performance.

Financial Performance Analysis of Savings and Loan Cooperatives (KSP) Swasti Sari Malaka Branch

This study aims to analyze the financial performance of Koperasi Swasti Sari Branch Malaka using financial ratios—liquidity, solvency, profitability, and activity ratios—from 2020 to 2023. The significance of this research lies in its contribution to understanding the financial resilience of cooperatives in Indonesia, particularly in rural and border areas. Using a descriptive quantitative approach, the analysis is based on secondary data obtained from financial reports, processed using Microsoft Excel tools. he results show that the average liquidity ratios indicate good short-term financial stability, with a Current Ratio of 151.68% and a Quick Ratio of 151.64%. The solvency ratio, Debt to Asset Ratio (DAR), averages 67.80%, reflecting controlled reliance on debt, though caution is advised for future financing. The profitability performance is excellent, as evidenced by the Net Profit Margin (NPM) of 67.94% and the Return on Assets (ROA) of 15.84%, indicating strong profitability management. However, the activity ratios highlight inefficiencies, with Cash Turnover averaging 2.13 times and Receivables Turnover at 0.09 times, underscoring the need for improved cash and receivable management. It is recommended that Koperasi Swasti Sari improve its cash and receivables management strategies to enhance operational efficiency, optimize liquidity, and maintain financial sustainability while prudently managing debt to ensure long-term growth.

Analisis Performa Keuangan Perusahan pada PT Indofood Sukses Makmur, Tbk Periode 2018-2023

This research is analyzing financial performance of PT Indofood Sukses Makmur, Tbk from 2018-2023 using liquidity, probability, solvency and activity. The objective of this study is to assess the company's ability to overcome challenges, particularly during the COVID-19 pandemic, and to understand the strategies it implemented in response. Data for this research was sourced from financial reports on the Indonesia Stock Exchange and analyzed using a quantitative descriptive approach. The study finds that the liquidity ratios show a positive trend, with an average Current Ratio of 145.9% and a Quick Ratio of 104.7%, indicating the company's strong capacity to meet short-term liabilities. Profitability remains stable, with an average Return on Investment (ROI) of 6.3% and Return on Equity (ROE) of 12.1%, reflecting the company's efficiency in generating profits. The solvency analysis, based on the Debt to Asset Ratio (DAR) averaging 48.2%, shows a balanced level of debt, while the decreasing Debt to Equity Ratio (DER) suggests improved debt management. The activity ratios, including Total Asset Turnover (TAT) and Fixed Asset Turnover (FAT), highlight consistent efficiency in utilizing assets to drive revenue. Despite the challenges posed by the pandemic, PT Indofood Sukses Makmur, Tbk has maintained solid financial health, demonstrating robust liquidity, stable profitability, and effective solvency and asset management. This research aims to contribute to financial literature and serve as a reference for both companies and investors in making informed strategic decisions.

Pengaruh Struktur Modal Terhadap Harga Saham Dengan Ukuran Perusahaan Sebagai Variabel Moderasi Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia

Increased corporate debt will result in a decrease in stock prices. A capital structure thatexceeds 100 percent indicates that the company uses more debt than its capital. Althoughusing debt, companies can make tax savings, using high debt can pose a high risk for thecompany. The research was conducted with the aim of knowing whether capital structurehas an effect on stock prices moderated by company size. The research applies a quantitativeapproach to achieve the goal. Measurement of capital structure in this study used the Debtto Equity Ratio (DER) and Debt to Assets Ratio (DAR), stock price measurements used closeprice data and data analysis used moderated regression analysis (MRA). The results of thestudy show that the Debt to Asset Ratio (DAR) has a positive effect on stock prices. Debt toEquity Ratio (DER) has no positive effect on stock prices. Firm size strengthens therelationship between DAR and stock prices and weakens the relationship between DER andstock prices. This influence can affect companies that have large enough assets, thisinfluence can attract investors to invest in the company

The Effect Of Return On Asset, Debt To Equity Ratio, Current Ratio And Debt To Asset Ratio On Return On Equity

This research aims to determine and analyze the influence of Return On Assets (ROA), Debt To Equity Ratio (DER), Current Ratio (CR) and Debt to Asset Ratio (DAR) on Return on Equity (ROE) in sector transportation and logistics companies which is listed on the Indonesian Stock Exchange. This research uses quantitative methods with multiple regression models. The population used in this research is sector transportation and logistics companies listed on the IDX for the 2022-2023 period. The sample for this research was 16 Financial Reports of Logistics & Deliveries sub-industry companies (K211) for the period 2022 and 2023 so that a total of 32 data were studied in 2 years of observation. The data collection technique is documentation. The data analysis technique used in this research is the classic assumption test and multiple linear regression analysis using the SPSS V26 software tool. The hypothesis was tested partially using the t test. The partial research results show that ROA and DAR have a positive effect on ROE, DER has a negative effect on ROE while CR has no effect on ROE in logistics and delivery sub-industry companies listed on the IDX for the 2022-2023 period. Simultaneous hypothesis using the F test. Simultaneous research results show a significant influence between ROA, DER, CR, DAR on ROE in logistics and delivery sub-industry companies listed on the IDX for the 2022-2023 period.

The Impact of Financial Ratios on Stock Prices of Healthcare Sector Companies Listed on the Indonesia Stock Exchange (IDX) in the 2020-2023 Period

In order to determine the impact that the Return On Asset (ROA), Current Ratio (CR), and Debt to Asset Ratio (DAR) have on the stock prices of health sector companies that are listed on the Indonesia Stock Exchange (IDX) between the years 2020 and 2023, this study will investigate the correlation between these three ratios. Secondary data are utilized in the research process. The approach of purposive sampling was utilized in order to identify ten businesses that met the requirements. The method of analysis that is utilized is called panel data regression, and it is realized through the utilization of the EViews 12 application. It has been determined that the fixed effect model (FEM) is the most effective model for panel data regression. In contrast to ROA, which did not have a significant relationship with stock price effects, the results showed that CR and DAR were marginally related to stock price influences (t test). It is also important to note that the three factors ROA, CR, and DAR all have an impact on stock prices simultaneously. With a value of 69.7%, the independent variable exerts a strong influence on the variable that is being studied. Due to the fact that these three factors are representative of the stock price of the company, the research was carried out with the intention of supporting investors in the process of decision-making and companies in the process of developing financial policies.

PENGARUH RASIO MANAJEMEN AKTIVA, LIKUIDITAS DAN LAVERAGE TERHADAP PROFITABILITAS EMITEN SYARIAH SEKTOR BASIC MATERIAL DI BURSA EFEK INDONESIA

Abstract : This study aims to test the effect of the Influence of Asset Management Ratio, Liquidity and Leverage on the Profitability of Sharia Issuers in the Basic Material Sector Listed on the Indonesia Stock Exchange. This study uses a quantitative method with multiple linear data analysis techniques. The sample used in this study was 29 companies with a research period of 2020-2022. The TATO variable has a significant effect on ROA. However, the CR variable in absolute terms has a significant negative effect on and the DAR variable in absolute terms has a significant negative effect on ROA. The TATO, CR, and DAR variables together have a simultaneous effect on ROA, this is indicated by the significance value so that it can be concluded that Ha4 is accepted that there is a simultaneous influence of TATO, CR and DAR on ROA with the results of the determination coefficient test (R Square), of 0.478 which means that the TATO, CR, DAR variables are able to explain the ROA variable 47.8%. Keywords: Total Assets Turn Over (TATO), Current Ratio (CR) Debt To Asset Ratio (DAR) Return On Assets (ROA)

Pengaruh Solvabilitas dan Profitabilitas terhadap Audit Delay pada Perusahaan BUMN Periode 2019-2023

This quantitative research aims to determine the factors that influence audit delay, namely solvency and profitability in BUMN listed on the Indonesia Stock Exchange (BEI) during the 2019-2023 period with a population of 55 observations. Meanwhile, the sample that met the criteria was 24 observations. The data collection technique was carried out using secondary data from annual reports of state-owned companies during the observation period. The research instrument uses debt to asset ratio (DAR) as a proxy for solvency and return on assets (RoA) as a proxy for profitability, and audit delay data. Data analysis was carried out using multiple linear regression. The results of this research reveal that simultaneously there is a significant influence between the solvency and profitability ratios on audit delay in state-owned companies in Indonesia during the 2019-2023 period. However, partially there is a significant treatment in the opposite direction of the two ratios; The solvency ratio has a negative effect, while the profitability ratio has a positive effect on audit delay.

The Effect of Mergers and Acquisitions on the Financial Performance Companies listed on the Indonesia Stock Exchange for the 2020-2022 period

This research aims to determine the effect of mergers and acquisitions on company financial performance in companies listed on the Indonesia Stock Exchange. The data collection method used in this research is a purposive sampling technique, based on existing criteria, there are 30 sample companies. The company's financial performance is measured using financial ratios, namely: Return On Assets (ROA), Current Ratio (CR) and Debt To Asset Ratio (DAR). The analytical method used in this research is the T-test difference analysis and the Wilcoxon signed rank test. The research results show that companies that carry out mergers and acquisitions in 2020-2022 with an average period of 1 year before and 1 year after the merger and acquisition show that there is no difference in profitability as indicated by Return On Assets (ROA), liquidity as indicated by Current Ratio (CR), solvency shown by Debt To Asset Ratio (DAR), before and after mergers and acquisitions. This research was conducted incompanies that carry out mergers and acquisitions in 2020-2022 and are listed on the Indonesian Stock Exchange. This study provides an in-depth understanding of how mergers and acquisitions affect the financial performance of companies in the Indonesian capital market. Therefore, stakeholders such as investors, company managers, regulators and academics can gain a better understanding of the impact of merger and acquisition activities on the Indonesian economy. There has been no research regarding the effect of mergers and acquisitions on financial performance in the 2020-2022 period in Indonesia. This knowledge gap is the reason for conducting this research.

Analisis Laporan Keuangan untuk Menilai Kinerja Keuangan Perusahaan Tahun 2018 – 2024

This research on plans to take a gander at monetary reports with respect to the improvement of exhibition of agribusiness organizations recorded on the Indonesia Stock Trade throughout recent years from 2018 to 2022 utilizing Current Ratio (CR), Quick Ratio (CR), Debt to Assets Ratio (DAR), Debt to Equity Ratio (DER) Net Profit Margin (NPM), Return On Assets (ROA),, Return On Equity (ROE), Total Assets Turnover (TATO) Fixed Assets Turnover (FATO),. Overall, the research reveals that agricultural companies listed on the Indonesia Stock Exchange have varying financial ratios, with some having very high ratios and others having very low ratios.

Capital structure: Its effects on earnings volatility, cash flows, and financial performance in commercial banks

This study aimed to clarify the effect of capital structure on earnings volatility and cash flows in the commercial banking sector. The research focused on all 15 banks listed on the Amman Stock Exchange, and data were gathered from their financial statements between 2018 and 2022. The study employed multiple regression analysis to assess the data and test hypotheses. Previous studies have shown mixed results, with some finding a positive relationship between capital structure and financial performance, while others presented opposing views. The findings of this study provide statistical evidence that the debt-to-asset ratio (DTA) positively influenced operating cash flows and their volatility, while negatively affecting profits and their volatility. Additionally, the debt-to-equity ratio (DETE) positively impacted operating cash flows, their volatility, and profit volatility. These results suggest that banks should aim for a balanced capital structure to maintain stable profits and cash flows over time. This requires careful consideration of risks, regulatory requirements, market conditions, and the cost of capital. A balanced approach, involving both debt and equity financing, helps banks manage the risks of fluctuating cash flows and profits.

Pengaruh Leverage Terhadap Pertumbuhan Laba pada Perusahaan Manufaktur Sektor industri Dasar Kimia yang Terdaftar di Bursa Efek Indonesia Periode 2018-2022

This research aimed to determine the influence of Debt To Equity Ratio and Debt To Asset Ratio on Profit Growth in the Basic Industry and Chemical Sectors Listed on the Indonesian Stock Exchange in 2018-2022. The research samples were selected through purposive sampling, where 41 companies met the requirements as samples. The analytical test tool used to test this research was multiple linear regression. The data analysis applied the SPSS 27 application. The research findings indicated that the Debt To Equity Ratio (DER) influenced profit growth negatively, and Debt To Asset Ratio (DAR) influenced profit growth positively. In the meantime, simultaneously, the Debt To Equity Ratio (DER) and Debt To Asset Ratio (DAR) influenced profit growth.

Faktor-Faktor yang Mempengaruhi Kinerja Keuangan dengan Moderasi Pengungkapan CSR pada Perusahaan di Industri Pertambangan Indonesia

The study aims for empirical evidence about the effect of managerial ownership, institutional ownership, and leverage as independent variables on dependent variable as financial performance with a moderating variable in the form of CSR disclosure in the mining industry listed on the Indonesia Stock Exchange for 2018-2022. Managerial ownership in this study is measured by dividing the number of managers who own shares in the company by number of ordinary shares outstanding. Institutional ownership in this research is measured dividing the number of institutions that own shares in the company by number of ordinary shares outstanding. Leverage in this study is measured by the Debt to Assets Ratio (DAR) which is calculated by dividing total liabilities by total assets. CSR Disclosure in this study is measured by dividing the number of CSR disclosed by total number of CSR. Financial performance in this study is measured by the Return on Assets Ratio (ROA) which is calculated by dividing net income by total assets. The total sample for this research was 10 companies, where the sample was selected using a purposive sampling method. This research data was analyzed using multiple linear regression analysis techniques processed with SPSS 23.0. The results of this research show that institutional ownership has a significant positive influence on financial performance and CSR disclosure is able to moderate the negative influence of institutional ownership and leverage on the company's financial performance, while managerial ownership and leverage do not have a significant influence and CSR disclosure is unable to moderate the influence of managerial ownership on financial performance.

Analisa Dampak Penerapan Akuntansi Sewa Pembiayaan terhadap Laporan Posisi Keuangan, Laporan Laba Rugi, dan Rasio Solvabilitas: Studi Pada Perusahaan Terbuka di Indonesia

IFRS 16 is the latest lease accounting standard to be implemented by PSAK 73 in Indonesia. PSAK 73 regulates the recognition, measurement, presentation, and disclosure of leases for lessees by classifying leases as finance leases. This results in the assets and liabilities from lease transactions being recognized in the financial statements, with optional exceptions for short-term leases and leases with low-value underlying assets. This study aims to evaluate the impact of implementing PSAK 73 on the assessment of company financial performance through financial ratios. The sample consists of nine companies from each of three industrial sectors: manufacturing, mining, and services, which are listed on the Indonesia Stock Exchange in 2020. The method used in this study is the constructive lease capitalization model developed by Imhoff, Lipe, and Wright (1991). The results show that the impact of lease capitalization is most significant in the service industry, followed by the mining and manufacturing industries, with average changes in Debt to Asset Ratio (DAR) and Debt to Equity Ratio (DER), as well as decreases in Return on Asset (ROA) and Return on Equity (ROE).

The role of enterprise risk management on company value is moderated by company size in coal mining entities listed on the Indonesia stock exchange

This study seeks to explore and emphasize the impact of Enterprise Risk Management (ERM) on firm value, using Tobin's Q, Price to Book Value (PBV), and Price to Earnings Ratio (PER) as measurement indicators. Additionally, it will analyze how factors such as firm size, Current Ratio (CR), Debt to Assets Ratio (DAR), Total Assets Turnover (TATO), and Return on Assets (ROA) affect these relationships. The research will focus on coal mining companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2021. The study used multiple linear regression with the ordinary least squares method to analyze the data. Hypothesis testing was performed using the t-test to evaluate the significance of the regression coefficients, with a significance level set at 5 percent. The results show that Enterprise Risk Management (ERM), Debt to Assets Ratio (DAR), and Return on Assets (ROA) significantly positively influence business value. Conversely, Current Ratio (CR), Total Assets Turnover (TATO), and firm size (SIZE) have a significant negative effect on company value. Furthermore, the study found that firm size affects the relationship between Enterprise Risk Management (ERM) and Tobin's Q. Additionally, the results suggest that as ERM, CR, DAR, TATO, ROA, and firm size increase, the company value also rises.

Tax Avoidance in F&B Companies in Relation Among Leverage, Sales Growth, and Firm Size with Profitability as Mediating

The objective of this research is to examine how leverage, sales growth, and firm size have an effect on tax avoidance through profitability as mediating in food and beverage companies listed on the Indonesia Stock Exchange (IDX). The research utilizes three independent variables: leverage measured by Debt to Asset Ratio (DAR); sales growth measured by the change in current sales relative to previous sales; and firm size measured by the natural logarithm of total assets. The mediating variable is profitability, measured by Return on Assets (ROA), while the dependent variable is tax avoidance, measured by Cash Effective Tax Rate (CETR). The population of this research is all of the food and beverage companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2023. The purposive sampling method was used in determining the sample and there were 21 companies obtained with a total research sample of 84 obtained over four years. The results of this research show that leverage and sales growth partially have a significant effect on profitability, while firm size partially has no significant effect on profitability. Leverage, sales growth, firm size and profitability partially have no significant effect on tax avoidance.

The Role of Capital Structure in Mediating the Effect of Liquidity on Profitability

The objective of this study is to assess the impact of the Current Ratio (CR) on the Net Profit Margin (NPM), with the Debt-to-Equity Ratio (DER) and Debt-to-Asset Ratio (DAR) serving as intervening variables. This research was conducted due to certain business phenomena that became the focal point of investigation, discrepancies between empirical data and existing theories, and gaps in previous studies that prompted the need for further exploration. This study employs a quantitative research approach, utilizing data collection techniques based on company financial reports through documentation methods. The population of this study comprises all companies listed and consistently included in the Business-27 Index on the Indonesia Stock Exchange (IDX) from 2013 to 2022. A total of 6 companies were selected as samples from the 27 companies available, using purposive sampling methods. Path analysis and the Sobel test were utilized as data analysis techniques in this research. The findings of this study indicate that the CR does not have a significant impact on NPM. However, CR has a negative and significant effect on both DER and DAR. Furthermore, DER and DAR do not have a significant influence on NPM. While DER cannot mediate the relationship between CR and NPM, DAR can mediate this relationship.

Capital Structure and Dividend Payout of Quoted Agriculture Firms in Nigeria: Moderating Effect of Financial Performance

Despite the previous effort to analyze the capital structure and dividend payout interface with mixed results, it appears the moderating effect of financial performance on the nexus was yet to be empirically examined. This study examined the moderating effect of financial performance on the relationship between the capital structure and dividend payout ratio of quoted agriculture firms in Nigeria. Debt-equity ratio and debt-assets ratio were the proxies of capital structure, while dividend payout ratio measured dividend payout. Return on asset was the proxy for financial performance. Adopting an ex-post facto research design, the panel data sourced from the annual published accounts of the firms were subjected to multiple regression analysis using STATA 13. The results showed that the debt-equity ratio has a negative and significant effect on the dividend payout ratio of quoted agriculture firms in Nigeria. The debt-assets ratio has a positive and insignificant effect on the dividend payout ratio of agriculture firms in Nigeria. Return on assets has a positive and significant effect on the dividend payout ratio of quoted agriculture firms in Nigeria. Furthermore, return on assets has a negative and significant moderating effect on the relationship between debt-equity ratio and dividend payout ratio, while return on assets also has a negative and insignificant moderating effect on the relationship between debt-assets ratio and dividend payout ratio of quoted agriculture firms in Nigeria. The firms should use debt-financed assets more productively to generate an optimum return on assets to reverse the negative effect of the debt-equity ratio on the dividend payout ratio if they are to consistently pay competitive dividends and attract investment.