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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Influence Analysis of Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), Debt To Equity Ratio (DER), and current ratio (CR), Against Corporate Profit Growth In Automotive In Indonesia Stock Exchange

Mohd Heikal, Muammar Khaddafi, Ainatul Ummah

http://dx.doi.org/10.6007/IJARBSS/v4-i12/1331

Open access

The purpose of this research to analyze the effect of Return On Asset, Return On Equity, Net Profit Margin, Debt To Equity Ratio and Current Ratio toward growth income either simultaneously or partially on automotive companies that were listed in Indonesia stock exchange. Independent variables used in this research were Return On Asset, Return On Equity, Net Profit Margin, Debt To Equity Ratio and Current Ratio and dependent variable in this research was growth incom.
The data used in this research was secondary data as 55 samples with purposive sampling. The method used to analyze the relation between independent variable and dependent variable was multiple linear regression and classical assumption test.
The findings of this research identified that simultaneously independent variables Return On Asset, Return On Equity, Net Profit Margin, To Equity Ratio and Current Ratio with F test, effected together to growth income significantly 0.000. While the result partially with T test, Return On Asset, Return On Equity, and Net Profit Margin to growth income with significance and positive of each was 0.029, 0,041 and 0.008. While Debt To Equity Ratio and Current Ratio to growth income with significance and negative of 0.008 and 0,001.
Companies must be able to demonstrate a good performance, high growth potential, and delivered company information sufficient to investors about the company.

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