Research conducted by (Muhamad Badru Zaman, 2021) entitled Influence of Debt To Total Asset Ratio (DAR) Current Ratio (CR) and Total Asset Turnover (TATO) on Return On Asset (ROA) and Its Impact on Stock Prices on Mining Companies on the Indonesian Stock Exchange of the Faculty of Industrial Engineering & Management Research, Universities Pamulang " The study was conducted to determine the effect of the debt-to-total asset ratio (DAR), current ratio (CR) and total asset turnover ( TATO) on Return on Assets (ROA) and its impact on share prices of mining companies on the Indonesian Stock Exchange in 2010. Population data collection was performed by taking secondary data in the form of the financial statements of 8 companies for the period when the financial statements were prepared. prepared, panel data and processed with software Views 9.0. The analytical method used is an associative descriptive analysis. The data analysis includes data feasibility testing, regression analysis and hypothesis testing in part and simultaneously. The results of this study indicate that (1) the effect of (DAR) on Return On Assets (ROA) has a positive insignificant effect, (2) the effect of Current Ratio (DER) on Return On Assets (ROA) has a significant positive effect, (3) the effect of Total Asset Turnover (TATO) on Return On Assets (ROA) has a positive insignificant effect (4) the influence of Debt To Asset Ratio (DAR), Current Ratio (CR) and Total Asset Turnover (TATO) simultaneously on Return On Assets (ROA) probe 0.00000 and F -Statistic 11.82037 have a significant positive effect (5) the effect of Return On Assets (ROA) on share prices has a positive and insignificant effect. Research conducted by (Randa Mohammed Shams Addin Al-Mawsheki, Norzalina Binti Ahmad , Norhafiza Binti Nordin, 2019) entitled The Effects of Efficient Working Capital to Total Assets and Working Capital Policies on Firm Performance: Evidence from Malaysian Manufacturing Firms “Faculty OF School of Economics, Finance and Banking, University Utara Malaysia (UUM), Malaysia.” The study was conducted to achieve this goal, this study performed a panel regression analysis of 959 observations for manufacturing companies in Malaysia from 2010 to 2016.
The final sample was 137 companies that had complete data for all variables in the period from 2010 to 2016. The purpose of descriptive statistical analysis was to describe the raw data in an easy and interpretable form. Ratio and working capital turnover on return on assets in plastics and packaging companies listed on the Indonesian Stock Exchange. Return on assets and price earnings. 4 The effects of effective working capital on total assets and working capital policies on the firm.
Effects of current ratio and debt-to-equity ratio on return on assets and return on equity. International Journal of Engineering and Science (IJES) 2019. Return on assets on firm value, 2) identify and analyze the impact of return on equity on firm value, 3) identify and analyze the impact of earnings per share on firm value. 2 Effect of current ratio, debt to asset ratio, total asset turnover and inflation on asset return.
4 The influence of current ratio and debt-to-asset ratio on return on assets of PT Selaras Aditama (Ilham, 2019). This study aims to determine the effect of current ratio and debt to asset ratio on the return on assets of PT Seelaras Aditama. The results of this study indicate that Current ratio has no significant effect on the return on assets.
ISSN: 2614-2074, E- ISSN: 2614-2066
- IDX Indonesian
- Theoretical Framework 1 . Signaling Theory
- Current Ratio
- Return on Assets (ROA)
- Debt to Assets Ratio (DAR)
- Total Asset Turnover (TATO)
- Research Concept Framework
- Research Hypothesis
- The Effect Current Ratio on Working capital to total assets
- The Effect Return on Assets on Working capital to total assets
- The Effect Debt to Assets Ratio on Working capital to total assets
Return on assets that can measure the company's ability to generate profits in the past and then projected into the future. The high ratio of total debt to total assets indicates that the company uses high financial leverage (financial leverage). If the debt-to-assets ratio falls into a low category, the security conditions of the company will be better.
The debt-to-total assets ratio (DAR) is used to measure how much of a company's assets finance its total debt. Total Asset Turnover (TATO) is a ratio used to measure the turnover of all assets owned by a company and measure how much sales are made with each rupee of assets. Meanwhile, according to the total asset turnover, it measures the activity of the assets and the ability of the company to generate sales using those assets.
The higher the total asset turnover value, the better the company manages its assets. Working capital is net working capital, which is part of real working capital, with which it is possible to finance the company's operations without liquidity disturbances. Working capital in total assets is a net measure of the firm's current assets in the firm's working capital.
The ratio shows the company's ability to generate net working capital from all its total assets. Working capital to total assets shows the relationship between total assets to working capital and shows the amount of working capital that can be obtained by the company for every rupee of total assets. WC/TA demonstrates the company's ability to generate net working capital from the total assets it owns.
Working capital is the total current assets available to finance the day-to-day operations of the business. TAT is used to measure the capital the company uses its total assets in generating net sales. While WCTA is used to see how much working capital can be generated from the total assets owned by the company.
A high WCTA level means that the company knows how to properly manage working capital and assets. The faster the company's assets turn over, the more working capital the company generates in total assets, which means that the two variables influence each other.
