Rai Amalia
Study Program Of Management, Faculty Of Economic and Business, Universitas Perjuangan Tasikmalaya

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The Effect Of Return On Assets, Debt To Assets Ratio And Degree Of Financial Leverage On Profit Growth (Case Study on PT. Lippo Karawaci Tbk. Period 2018 – 2025): Rai Amalia; Rita Tri Yusnita; Evilia Sri Yuniar
Jurnal Ekonomi, Manajemen, Bisnis dan Akuntansi Vol. 3 No. 1 (2026): Oktober
Publisher : Utami Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70963/jemba.v3i1.867

Abstract

This research is motivated by fluctuating profit growth from 2018 to 2025. The objective of the study is to determine the effect of Return on Assets (ROA), Debt to Assets Ratio (DAR) and Degree of Financial Leverage (DFL) on Profit Growth at PT. Lippo Karawaci Tbk for the period 2018-2025. The method used in this study is the causality method with a quantitative approach, with secondary data from annual financial reports and sustainability. The sample consists of 32 selected through purposive sampling. The analysis was carried out using the classical assumption test and multiple linear regression. Based on the results of the F test, it shows that return on assets, debt to assets ratio and degree of financial leverage simultaneously have a significant effect on profit growth. Based on the results of the T test, it shows that Return on Assets has a significant effect on profit growth. Debt to assets ratio has a significant effect on profit growth and degree of financial leverage has no significant effect on profit growth. Thus, to increase the effectiveness of asset use so that ROA can increase and support profit growth. Management also needs to optimally manage its debt structure, as DAR has been shown to significantly impact profit growth. Furthermore, companies need to evaluate their use of Degree of Financial Leverage to increase productivity, although this study found no significant effect.