Formosa Journal of Social Sciences (FJSS)
Vol. 3 No. 3 (2024): September 2024

The Effect of Current Ratio and Debt to Assets Ratio on Debt to Equity Ratio at PT Adhi Karya (Persero) Tbk Which are Listed on the Indonesia Stock Exchange for the Periode 2013-2022

Siti Ayu Sagita (Unknown)
Dwinanto Priyo Susetyo (Unknown)



Article Info

Publish Date
30 Sep 2024

Abstract

This study aims to analyse how PT Adhi Karya (Persero) Tbk, a company listed on the BEI in Indonesia, is affected by the CR and DAR in relation to its DER. Using a purposive selection strategy, this quantitative study draws 40 samples from financial records covering the years 2013–2022. Classical assumption testing and multiple linear regression analysis are the approaches utilised for data analysis. The F-test and the T-test are then used for hypothesis testing. The study found a medium amount of closeness between the CR and the DER, with a correlation value of -0.672342. A correlation value of 0.976407 between DAR and DER places it in the strong category. An study of the contribution of the independent variables, namely the CR and DAR, yields a DER value of 95.2%, while other factors account for the remaining 4.8%. Since it generates a sig value of 0.0000 < 0.05, the CR value significantly impacts the DER, according to incomplete study. With a sig value of 0.0000 < 0.05, DAR significantly impacts the DER. At the same time, the DER is significantly impacted by the two independent variables, CR and DAR, with a sig value of 0.0000 < 0.05

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Journal Info

Abbrev

fjss

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Environmental Science Social Sciences

Description

Formosa Journal of Social Sciences (FJSS) is a peer reviewed international journal that covers the fields of scientific research, literature studies and academic scholarship that study social groups and, more generally, human interactions. FJSS is a quarterly publication also cover articles on ...