West Science Business and Management
Vol. 3 No. 01 (2025): West Science Business and Management

The Effect of Leverage, Liquidity, and Profitability on Return on Assets (ROA) at Company X

Hasibuan, Faisal Umardani (Unknown)
Ramadhan, Toto (Unknown)

Article Info

Publish Date
28 Mar 2025

Abstract

This study examines the effect of leverage, liquidity, and profitability on Return on Assets (ROA) at Company X using a quantitative research design. Data were collected from 130 samples, analyzed using a Likert scale (1-5), and processed with Structural Equation Modeling-Partial Least Squares (SEM-PLS) 3. The findings reveal that all three variables—leverage, liquidity, and profitability—positively and significantly impact ROA. Liquidity demonstrates the strongest influence, followed by profitability and leverage. The results underscore the importance of liquidity management, operational efficiency, and optimal leverage utilization in enhancing financial performance. These insights provide practical implications for improving the financial strategies of organizations in similar industries.

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Journal Info
West Science Business and Management
Website

Abbrev

wsbm

Publisher

Westscience Press

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The Editors invite writers and experts to publish and share their ideas through scientific and empirical research in the field of Management and Business. The main objective of this publication is to improve theory, concept, and practice in the field of management and business. Dissemination of ...