Research Article
The Effect of Debt to Asset Ratio and Debt to Equity Ratio Against Return on Assets
@INPROCEEDINGS{10.4108/eai.18-11-2020.2311805, author={Deni Sunaryo and Etty Puji Lestari}, title={The Effect of Debt to Asset Ratio and Debt to Equity Ratio Against Return on Assets}, proceedings={Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia}, publisher={EAI}, proceedings_a={BIS-HSS}, year={2021}, month={9}, keywords={debt to assets ratio debt to equity ratio return on assets}, doi={10.4108/eai.18-11-2020.2311805} }- Deni Sunaryo
Etty Puji Lestari
Year: 2021
The Effect of Debt to Asset Ratio and Debt to Equity Ratio Against Return on Assets
BIS-HSS
EAI
DOI: 10.4108/eai.18-11-2020.2311805
Abstract
The purpose of this study is to ascertain the determinants of return on assets caused by the debt-to-asset and debt-to-equity ratios by analyzing the financial statements of food and beverage companies listed on the Southeast Asian Stock Exchange between 2012 and 2018. The independent variables (free) and dependent variables (dependent) are used in this study, with the dependent variable being the Debt to Asset and Debt to Equity Ratios, and the independent variable being the Return on Assets. Purposive sampling was used to identify eight companies that provided complete financial reports in order to obtain 56 samples. Multiple linear regression analysis, a partial test, and a simultaneous test were used in this study. The study's findings suggest that the Debt to Asset Ratio has a significant effect on Return on Assets, while the Debt to Equity Ratio does not. The results of the concurrent study of the Debt to Asset Ratio and the Debt-to-Equity Ratio on Return On Assets indicate that both have a significant effect on Return On Assets at a level of 0.200>0.05, indicating that both the Debt to Asset Ratio and the Debt to Equity Ratio have a significant effect on Return On Assets.