An Affect of Current Ratio and Debt-to-Equity Ratio to the Return on Assets: Case of Corporation Registered in Indonesian Stock Exchange Period of 2014–2020

Abstract

The competition is very tight, causing competitive advantage to develop and involve the company's financial performance. Therefore, it is very important to further study the company's financial performance. This study intended to find out the current ratio and debt-to-equity (DER) ratio to the Return on Assets. The source data consist of secondary data from financial reports of the one of corporation’s manufacturing industry that registered at the Indonesian Stock Exchange for the 2014-2020 period. The data analysis used in this investigation is multiple linear regression. The results showed that each of the Current Ratio and Debt-to-Equity Ratio does not affect the Return on Assets significantly and were also simultaneously tested from 2014 through 2020 with no-proved significantly.