Helmalia Poetry
Universitas Pamulang

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The Effect of Sales Growth and Capital Structure on Return On Asset (ROA) At PT Unilever Indonesia Tbk 2014-2023 Period Helmalia Poetry; Habibah Habibah
Indonesian Financial Review Vol. 5 No. 2 (2025)
Publisher : Yayasan Pendidikan Penelitian dan Pengabdian Al-amsi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55538/ifr.v5i2.86

Abstract

This study investigates the effect of Sales Growth and Capital Structure (Debt to Equity Ratio/DER) on Return on Asset (ROA) at PT Unilever Indonesia Tbk for the period 2014 to 2023. Using a quantitative approach and multiple regression analysis, Sales Growth is used as an indicator of company performance, DER as a measure of capital structure, and ROA as an indicator of profitability. The findings show that Sales Growth does not have a significant effect on ROA, while DER has a significant negative effect. However, both variables simultaneously have a significant effect on ROA. The coefficient of determination value of 93.8% indicates that Sales Growth and DER can explain most of the variation in ROA, while the rest is influenced by other factors outside the study. This study emphasizes the importance of managing capital structure in maintaining company profitability