Claim Missing Document
Check
Articles

Found 1 Documents
Search

The Effect Of Du Pont System Components On Roe In Body Care Product Industry Companies Listed On The Indonesia Stock Exchange (Idx) In The 2020-2024 Period Dinda Amelia Rizka
International Journal of Economics, Business and Innovation Research Vol. 5 No. 05 (2026): International Journal of Economics, Business and Innovation Research( IJEBIR)
Publisher : Cita konsultindo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.63922/ijebir.v5i05.5121

Abstract

This study aims to examine the effect of the Du Pont System components consisting of Net Profit Margin (NPM), Total Asset Turnover (TATO), and Equity Multiplier (EM) on Return on Equity (ROE) in primary consumer goods companies in the personal care products industry listed on the Indonesia Stock Exchange for the 2020-2024 period. The approach used is quantitative with a purposive sampling method which resulted in 7 sample companies (KINO, MBTO, MRAT, TCID, UCID, UNVR, VICI). The analysis was conducted using panel data regression with EViews 12, where the Fixed Effect Model was selected through the Chow Test and the Hausman Test, and all classical assumption tests were met. The results showed that partially only NPM had a positive and significant effect on ROE (prob. = 0.0001), while TATO (prob. = 0.9602) and EM (prob. = 0.1187) did not have a significant effect. Simultaneously, the three variables have a significant effect on ROE with an F-statistic (prob. = 0.000) and a coefficient of determination of 96.56%, which indicates that operational profitability is the most critical determinant of value creation for shareholders in the personal care products industry