Jurnal Ilmiah Akuntansi dan Finansial Indonesia
Vol 7 No 2 (2024): Jurnal Ilmiah Akuntansi dan Finansial Indonesia

The Role of Debt to Ratio and Profitability in Economic Growth and Company Development

Susanthi, Putu Rani (Unknown)
Kremer, Hendri (Unknown)
Hazriyanto, Hazriyanto (Unknown)
Ciptoputro, Vincentius Ade Arianto (Unknown)
Sari, Asih Purwana (Unknown)



Article Info

Publish Date
27 Dec 2023

Abstract

This study analyses the relationship and influence of Debt Asset Ratio (DAR) on company profitability. The data used in this study were obtained from the financial reports of companies listed on the Indonesia Stock Exchange during 2018-2022. The analytical method used is simple linear regression using statistical software. The steps are planning, collecting, analyzing, and interpreting data to answer research questions. DAR and profitability as variables in this study, population, and samples from 6 companies for five years. The influence of Debt to Asset Ratio applied to Company Profitability was analyzed using the linear regression statistical method. Debt to Asset Ratio is the independent variable, and Company Profitability is the dependent variable. The results of the correlation analysis found a linear relationship between the variables. The results of the regression analysis found that there was a shallow level of influence. This study has several limitations on the number of samples, variables, and industrial sectors studied. In addition, other factors also need to be considered-some recommendations for further research. They expanded the study sector, examining other factors such as accounts receivable turnover and company size.

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Journal Info

Abbrev

jiafi

Publisher

Subject

Economics, Econometrics & Finance

Description

Penerbitan Jurnal Ilmiah Akuntansi dan Finansial Indonesia setiap enam bulan sekali pada bulan April dan Oktober setiap tahunnya, dan Jurnal Ilmiah Akuntansi dan Finansial Indonesia memberikan peluang kepada civitas akademika maupun praktisi untuk mempublikasikan hasil-hasil penelitian, kajian, ...