International Journal of Management and Business
Vol. 2 No. 4 (2025): October

The Impact of Liquidity and Leverage on Return on Investment (Roi) in Consumer Goods Firms Listed on The Indonesia Stock Exchange From 2021 to 2024

Hakim, Lukmanul (Unknown)
Hernawati, Euis (Unknown)



Article Info

Publish Date
29 Sep 2025

Abstract

This study seeks to examine the impact of liquidity and leverage on return on investment (ROI) in consumer products companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2024. The study utilizes a quantitative methodology, including an associative design. Samples were chosen using purposive sampling, focusing on active enterprises that regularly publish yearly financial statements and supply comprehensive ratio data. The data were examined with multiple linear regression utilizing JASP statistical software. The findings demonstrate that both liquidity and leverage concurrently exert a substantial influence on ROI. Leverage exerts a favorable and considerable influence on ROI; however, liquidity does not have a meaningful impact. The adjusted coefficient of determination (adjusted R²) of 26.3% indicates that the variance in ROI can be elucidated by the two independent variables. These data indicate that effective debt management has a greater impact on investment return performance than the company's liquidity status.

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Journal Info

Abbrev

ijmb

Publisher

Subject

Economics, Econometrics & Finance

Description

IRDH IJMB International Journal of Management and Business is a periodical scientific journal (four times a year) January, April, July, October. The main purpose of this journal is to disseminate scientific articles in the field of management, economics, accounting and business, which have a ...