The Role of ROA in Mediating DER, Current Ratio, and TATO on Firm Value

Adhi Widyakto; Adhi Pradiptya; Citra Andriani Kusumawati; Oktavie Fresiliasari

doi:10.33633/jpeb.v9i2.11086

Authors

Adhi Widyakto Department of Management, Faculty of Economics, Semarang State University
Adhi Pradiptya Department of Management, Faculty of Economics, Semarang State University
Citra Andriani Kusumawati Department of Management, Faculty of Economics, Semarang State University
Oktavie Fresiliasari Department of Acounting, Faculty of Economics, Semarang State University

DOI:

https://doi.org/10.33633/jpeb.v9i2.11086

Keywords:

debt equity ratio, current ratio, total asset turnover, price to book ratio

Abstract

Abstract______________________________________________________This research aims to obtain empirical evidence on the effect of debt equity ratio, current ratio and toral asset turnover on firm value through return on assets. This research was quantitative one with its secondary data obtained from annual financial statements published by companies. Its population included food and beverage companies registered in the Indonesian Stock Exchange in 2017-2022. samples were taken using purposive sampling where 52 companies were obtained. The collected data were then processed using e-views program. Debt equity ratio had no effect on return on assets. Current ratio negatively and significantly affected return on asset. Total Asset Turnover positively and significantly affected return on asset. Debt Equity Ratio negatively and affected considerably price to book value. Current Ratio did not affect price to book value. Both total asset turnover and return on assets positively and significantly affected price to book value. Debt equity ratio affected price to book value via return on assets. Current ratio and total asset turnover had no effect on price to book value via return on asset. Sales growth and total asset turnover had no effect on price to book value via the intervening variable, i.e., return on assets. For this reason, future researchers are recommended to add more variables presumably capable of serving as an intervening variable such as return on equity. Since the samples used only included Food and Beverages companies registered in IDX 2017-2022, future research is suggested to expand the samples to allow them to capture the effects of variables that they will study. This research made some contribution to financial management literature. The research showed different findings from the previous one, allowing them to be used as something new regarding the factors affecting profitability and firm value. The research found that total asset turnover and return on assets positively and significantly affected price to book value. Therefore, it is important for managers to pay closer attention to it to increase their firm values. debt equity ratio, current ratio, total asset turnover, return on assets, price to book value. Keywords debt equity ratio, current ratio, total asset turnover, return on asset, price to book value

References

Ahmad, H., & Muslim, M. (2022). Several Factors Affecting Firm Value Manufacturing In Indonesia. Jurnal Akuntansi, 26(1), 127. Https://Doi.Org/10.24912/Ja.V26i1.821

Alpi, M. F., & Gunawan, A. (2018). Pengaruh Current Ratio Dan Total Assets Turnover Terhadap Return On Assets Pada Perusahaan Plastik Dan Kemasan. 17(2), 1–36.

Aprilia, R., Puspitaningtyas, Z., & Prakoso, A. (2018). Profita: Komunikasi Ilmiah Akuntansi Dan Perpajakan Dengan Return On Asset Sebagai Intervening Variable (Studi Pada Perusahaan Sektor Industri Barang Konsumsi Di Indonesian Stock Exchange Periode 2013-2017). Profita: Komunikasi Ilmiah Akuntansi Dan Perpajakan, 11(3), 329–358.

Aslindar, D. A., & Lestari, U. P. (2020). Pengaruh Profitability, Likuiditas, Dan Peluang Pertumbuhan Terhadap Firm Value Dengan Capital Structure Sebagai Intervening Variable. Dinamika Akuntansi, Keuangan Dan Perbankan, 9(1), 91–106.

Chandra, A., Wijaya, F., Angelia, & Hayati, K. (2021). Pengaruh Debt To Equity Ratio, Total Assets Turnover, Firm Size, Dan Current Ratio Terhadap Return On Assets. Jurnal Akuntansi, Keuangan, Dan Manajemen, 2(1), 57–69. Https://Doi.Org/10.35912/Jakman.V2i1.135

Dewangga, N. P., & Sari, L. P. (2017). FAKTOR-FAKTOR YANG MEMPENGARUHI CAPITAL STRUCTURE PERUSAHAAN OTOMOTIF DI INDONESIAN STOCK EXCHANGE PERIODE 2011-2015. Universitas Nusantara PGRI Kediri, 01, 1–7.

Dwiyanthi, N., & Sudiartha, G. M. (2017). Pengaruh Likuiditas Dan Perputaran Modal Kerja Terhadap Profitability Pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi. E-Jurnal Manajemen Unud, 6(9), 4829–4856.

Elisa, S. N., & Amanah, L. (2021a). Pengaruh Financial Performance, Ukuran Perusahaan, Dan Pertumbuhan Penjualan Terhadap Firm Value. Jurnal Ilmu Dan Riset Akuntansi, 10(7), 1–20.

Elisa, S. N., & Amanah, L. (2021b). Pengaruh Financial Performance, Ukuran Perusahaan Dan Keputusan Investasi Terhadap Firm Value. Jurnal Ilmu Dan Riset Akuntansi, 10(7), 312–328. Http://Www.Yinglisolar.Com/Us/About/Sustainability/

Enqvist, J., Graham, M., & Nikkinen, J. (2013). THE IMPACT OF WORKING CAPITAL MANAGEMENT ON FIRM PROFITABILITY IN DIFFERENT BUSINESS CYCLES: EVIDENCE FROM FINLAND. Elsevier, 32(August), 40. Https://Doi.Org/Https://Doi.Org/10.1016/J.Ribaf.2014.03.005

Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG Performance And Firm Value: The Moderating Role Of Disclosure. Global Finance Journal.

Gantino, R., & Iqbal, F. M. (2017). Pengaruh Leverage, Profitability, Dan Ukuran Perusahaan, Terhadap Kebijakan Dividen Pada Sub Sektor Industri Semen Dan Sub Sektor Industri Otomotif Terdaftar Di Indonesian Stock Exchange Periode 2008-2015. Jurnal Riset Akuntansi & Bisnis, 17(2), 1–16.

Ghafar, F. M., Bebasari, N., & ... (2023). Analisis Pengaruh Return On Asset (ROA), Beta Saham, Cash Conversion Cycle (CCC) Terhadap Return Saham Perusahaan Telekomunikasi Yang Terdaftar Di BEI …. Jurnal Mirai …, 8(2), 476–486.

Harahap, I. M., Septiani, I., & Endri, E. (2020). Effect Of Financial Performance On Firms’ Value Of Cable Companies In Indonesia. Accounting, 6(6), 1103–1110. Https://Doi.Org/10.5267/J.Ac.2020.7.008

Hasangapon, M., Iskandar, D., Purnama, E. D., & Tampubolon, L. D. (2021). The Effect Of Firm Size And Total Assets Turnover (Tato) On Firm Value Mediated By Profitability In Wholesale And Retail Sector Companies. PRIMANOMICS: Jurnal Ekonomi Dan Bisnis, 19(3), 1–15. Https://Jurnal.Ubd.Ac.Id/Index.Php/Ds

Hutapea, A. W., Saerang, I. S., & Joy E. Tulung. (2017). Pengaruh Return On Assets, Net Profit Margin, Debt To Equity Ratio, Dan Total Assets Turnover Terhadap Harga Saham Industri Otomotif Dan Komponen Yang Terdaftar Di Indonesian Stock Exchange. Jurnal EMBA, 5(1), 541–552.

Irman, M., Purwati, A. A., & Juliyanti. (2020). Analysis On The Influence Of Current Ratio, Debt To Equity Ratio And Total Asset Turnover Toward Return On Assets On The Otomotive And Component Company That Has Been Registered In Indonesia Stock Exchange Within 2011-2017. International Journal Of Economics Development Research (IJEDR), 1(1), 36–44. Https://Doi.Org/10.37385/Ijedr.V1i1.26

Irnawati, J. (2019). Pengaruh Return On Assets (ROA), Return On Equity (ROE) Dan Current Ratio (CR) Terhadap Firm Value Dan Dampaknya Terhadap Kebijakan Deviden ( Studi Kasus Pada Perusahaan Construction And Engine Ering Yang Terdaftar Di Bursa Efek Singapura ). Jurnal Sekuritas (Saham, Ekonomi, Keuangan Dan Investasi), 2(2), 1–13.

Islami, R., Solihat, P. A., Jamil, A., & Suryadi, N. (2022). Pengaruh Profitability, Likuiditas, Leverage Dan Ukuran Perusahaan Terhadap Konservatisme Akuntansi (Studi Pada Perusahaan Subsektor Transportasi Di Indonesian Stock Exchange Periode 2017-2019). Management Studies And Entrepreneurship Journal, 3(3), 1285–1295.

Jihadi, M., Vilantika, E., Hashemi, S. M., Arifin, Z., Bachtiar, Y., & Sholichah, F. (2021). The Effect Of Liquidity, Leverage, And Profitability On Firm Value: Empirical Evidence From Indonesia. Journal Of Asian Finance, Economics And Business, 8(3), 423–431. Https://Doi.Org/10.13106/Jafeb.2021.Vol8.No3.0423

Khakim, M. L., & Yudiantoro, D. (2022). PENGARUH PROFITABILITY, LEVERAGE, DAN KEBIJAKAN DIVIDEN TERHADAP FIRM VALUE PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DIINDONESIAN STOCK EXCHANGE. INTELEKTIVA, 4(3), 30–46.

Laela, R. H., & Hendratno. (2019). Pengaruh Current Ratio, Debt To Equity Ratio Dan Total Asset Turnover Terhadap Return On Asset. Jasa ( Jurnal Akuntansi, Audit Dan Sistem Information Akuntansi ), 3(1), 120–131.

Maharani, Y. A., & Mawardhi, W. (2022). Pengaruh Profitability, Firm Size, Dan Growth Terhadap Firm Value Dengan Capital Structure Sebagai Intervening Variable (Studi Kasus Pada Perusahaan Food And Beverage Yang Terdaftar Pada Indonesian Stock Exchange Tahun 2015-2020). Diponegoro Journal Of Management, 11(1), 1–12.

Manoppo, H., & Arie, F. V. (2016). PENGARUH CAPITAL STRUCTURE, UKURAN PERUSAHAAN DAN PROFITABILITY TERHADAP FIRM VALUE OTOMOTIF YANG TERDAFTAR DI INDONESIAN STOCK EXCHANGE PERIODE 2011-2014; THE INFLUENCE OF CAPITAL STRUCTURE, COMPANY SIZE AND PROFITABILITY TOWARDS AUTOMOTIVE COMPANY VALUE . Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis, Dan Akuntansi, 4(2), 485–497. Https://Doi.Org/DOI: Https://Doi.Org/10.35794/Emba.4.2.2016.13082

Misran, M., & Chabachib, M. (2017). Analisis Pengaruh DER CR Dan TATO Terhadap PBV Dengan ROA Sebagai Intervening Variable ( Studi Pada Perusahaan Properti Dan Real Estate Yang Terdaftar Pada BEI Tahun 2011 – 2014 ). Journal Of Management, 6(1), 1–13.

Nainggolan, A. M. (2021). Pengaruh Current Ratio Dan Total Asset Turnover Terhadap Return On Asset Pada Perusahaan Manufaktur Bidang Industri Dan Kimia Yang Terdaftar Di JII. In Skripsi (P. 128). IAIN Padangsidimpuan.

Nirawati, L., Samsudin, A., Stifanie, A., Setianingrum, M. D., Syahputra, M. R., Khrisnawati, N. N., & Saputri, Y. A. (2022). PROFITABILITY DALAM PERUSAHAAN. Journal Manajemen Dan Bisnis, 5(1), 60–68.

Nugraha, M. K., & Kurnia. (2017). Pengaruh Financial Performance, Ukuran Perusahaan Dan Keputusan Investasi Terhadap Firm Value. Jurnal Ilmu Dan Riset Akuntansi, 6(1), 1–17.

Permana, A. A. N. B. A., & Rahyuda, H. (2018). PENGARUH PROFITABILITY, SOLVABILITAS,LIKUIDITAS, DAN INFLASI TERHADAP FIRM VALUE. E-Jurnal Manajemen Unud, 8(3), 1577–1607. Https://Doi.Org/10.24843/Ejmunud.2019.V08.I03.P15

Pouraghajan, A., & Emamgholipourarchi, M. (2012). Impact Of Working Capital Management On Profitability And Market Evaluation: Evidence From Tehran Stock Exchange. International Journal Of Business And Social Science, 3(10), N/A.

Purwanto, P., & Agustin, J. (2017). Financial Performance Towards Value Of Firms In Basic And Chemicals Industry. European Research Studies Journal, XX(2), 443–460.

Radiman, R., & Athifah, T. (2021). Pengaruh Debt To Equity Ratio Dan Return On Asset Terhadap Price Book Value Dengan Kepemilikan Manajerial Sebagai Variable Moderasi. Maneggio : Jurnal Ilmiah Magister Manajemen, 4(1), 23–38.

Rahmawati, K. S., Yulianti, & Suryawardana, E. (2020). FAKTOR – FAKTOR YANG MEMPENGARUHI FIRM VALUE PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI INDONESIAN STOCK EXCHANGE TAHUN 2014-2018. Majalah Ilmiah Solusi, 18(3), 117–131.

Rasyad, F. H. S., & Husnan, S. (2019). Keputusan Pendanaan Dan Kebijakan Dividen Perusahaan Pada Tahap Growth Dan Mature. 3(5).

Salmi, D., & Azib. (2019). Pengaruh Return On Asset Dan Total Asset Turnover Terhadap Firm Value (Studi Kasus Pada Perusahaan Sub Sektor Barang Dan Konsumsi Yang Terdaftar Di Indeks Saham Syariah Indonesia Tahun 2016-2018); The Influence Of Return On Asset And Total Asset Tur. Prosiding Manajemen, 5(2), 1193–1198.

Santoso, A., & Susilowati, T. (2020). Ukuran Perusahaan Memoderasi Pengaruh Capital Structure Terhadap Firm Value. Adbis: Jurnal Administrasi Dan Bisnis, 13(2), 156. Https://Doi.Org/10.33795/J-Adbis.V13i2.74

Sari, Chandra, T., & Panjaitan, H. P. (2021). The Effect Of Company Size And DER On ROA And Company Value In The Food And Beverage Sub Sector On The Indonesia Stock Exchange (IDX). Journal Of Applied Business And Technology, 2(2), 134–141. Https://Doi.Org/10.35145/Jabt.V2i2.69

Setiawan, A. F., & Suwaidi, R. A. (2022). Pengaruh Rasio Likuiditas, Aktivitas, Dan Leverage Terhadap Profitability Dengan Firm Size Sebagai Variable Moderasi. Briliant: Jurnal Riset Dan Konseptual, 7(3), 750. Https://Doi.Org/10.28926/Briliant.V7i3.1035

Setyabudi, T. (2021). The Effect Of Institutional Ownership, Leverage, And Profitability On Firm Value With Dividend Policy As An Intervening Variable. Journal Of Business And Management Review, 2(7), 457–469. Https://Doi.Org/10.47153/Jbmr27.1632021

Silviani, W., Panjaitan, R., Hutagalung, S. A., & Sipahutar, T. T. U. (2023). RETURN ON ASSETS, CURRENT RATIO, NET PROFIT MARGIN, TOTAL ASSET TURNOVER AFFECTS PROFIT DEVELOPMENT IN THE MANUFACTURING INDUSTRY LISTED ON THE INDONESIAN STOCK EXCHANGE FOR THE 2015-2019 PERIOD; RETURN ON ASSETS, CURRENT RATIO,NET PROFIT MARGIN, TOTAL AS. COSTING:Journal Of Economic, Business And Accounting, 6(2), 2035–2045.

Sondakh, P., Saeran, I., & Samadi, R. (2019). PENGARUH CAPITAL STRUCTURE (ROA, ROE DAN DER) TERHADAP FIRM VALUE (PBV) PADA PERUSAHAAN SEKTOR PROPERTI YANG TERDAFTAR DI BEI (Periode 2013-2016). Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 7(3), 3079–3088.

Sukmayanti, C. P., & Sembiring, F. M. (2022). Pengaruh Current Ratio Dan Debt To Equity Ratio Terhadap Price To Book Value Dengan Return On Assets Sebagai Intervening Variable (Studi Pada Perusahaan Non Keuangan Kelompok Indeks LQ45 Di Indonesia). INOBIS: Jurnal Inovasi Bisnis Dan Manajemen Indonesia, 5(2), 202–215. Https://Doi.Org/10.31842/Jurnalinobis.V5i2.224

Sulistiyan Rahayu, & Zulaikha. (2022). FAKTOR-FAKTOR YANG BERPENGARUH TERHADAP VOLUNTARY AUDITOR SWITCHING (Kajian Pada Perusahaan Manufaktur Yang Terdaftar Di Indonesian Stock Exchange (BEI) Periode Tahun 2018-2020). Diponegoro Journal Of Accounting, 11(4), 1–14.

Tailab, M. M. K. (2014). The Effect Of Capital Structure On Profitability. International Journal Of Business And Management Invention, 3(12), 54–61. Https://Doi.Org/10.4018/978-1-4666-6635-1.Ch018

Tunggal, C. A., & Ngatno. (2018). Pengaruh Capital Structure Terhadap Firm Value Dengan Ukuran Dan Umur Perusahaan Sebagai Variable Moderator (Studi Kasus Tahun 2014- 2016) Pada Perusahaan Sub-Sektor Makanan Dan Minuman Yang Terdaftar Di BEI. JIAB: Jurnal Ilmu Administrasi Bisnis, 7(2), 141–157. Https://Doi.Org/DOI: Https://Doi.Org/10.14710/Jiab.2018.20330

Utami, P., & Welas. (2019). PENGARUH CURRENT RATIO, RETURN ON ASSET, TOTAL ASSET TURNOVER DAN DEBT TO EQUITY RATIO TERHADAP FIRM VALUE (Studi Empiris Pada Perusahaan Manufaktur Sub Sektor Properti Dan Real Estate Yang Terdaftar Di Indonesian Stock Exchange Periode 2015-2017). Jurnal Akuntansi Dan Keuangan, 8(1), 71–76.

Utomo, N. A. (2016). Faktor-Faktor Yang Mempengaruhi Firm Value Pada Perusahaan Indeks LQ45 Di Indonesian Stock Exchange. Dinamika Akuntansi, Keuangan Dan Perbankan, 5(1), 82–94.

Wahyuni, N., & Gani, A. A. (2022). Reviewing The Firm Value In Terms Of Profit, Debt, And Growth. Jurnal Manajemen, 26(1), 121–139. Http://Dx.Doi.Org/10.24912/Jm.V26i1.837

Wardhany, D. D. A., Hermuningsih, S., & Wiyono, G. (2019). PENGARUH PROFITABILITY, LEVERAGE DAN UKURAN PERUSAHAAN TERHADAP FIRM VALUE (STUDI EMPIRIS PADA PERUSAHAAN YANG TERGABUNG DALAM LQ45 PADA PERIODE 2015-2018). Ensiklopedia Of Journal, 2(1), 216–224.