<![CDATA[The pharmaceutical industry is one of the strategic sectors in the Indonesian economy, given its close relation to the fulfillment of basic healthcare needs, making profitability a critical indicator of corporate performance in this sector. This research aims to examine the influence of Net Profit Margin (NPM) on Return on Assets (ROA) of PT Kalbe Farma Tbk, one of the largest pharmaceutical companies listed on the Indonesia Stock Exchange (IDX). This research uses the quarterly financial reports of PT Kalbe Farma Tbk., based in Indonesia, for the 2018-2025 period as its data source. This research implements a quantitative research method with a descriptive-verificative approach, by examining the results of simple linear regression analysis, following the fulfillment of classical assumption tests, namely normality, autocorrelation, and heteroscedasticity tests. The results of the regression indicate a positively significant impact of NPM on ROA, where changes in NPM are followed by proportional changes in ROA. These findings support the Du Pont System framework, in which profit margin serves as a dominant determinant of asset profitability, and are consistent with signaling theory, whereby a high and stable NPM sends a positive signal to investors and creditors regarding the company's operational efficiency. Therefore, it can be determined that the efficiency of cost management reflected in NPM has a dominant role in driving the profitability performance of PT Kalbe Farma Tbk.]]>
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