THE EFFECT OF CURRENT RATIO (CR), QUICK RATIO (QR), DEBT

TO ASSETS RATIO (DAR), DEBT TO EQUITY RATIO (DER) ON

PROFITABILITY IN BANKING SUB-SECTORS LISTED ON THE
INDONESIA STOCK EXCHANGE
RIMA MELATI
2019211078

ABSTRACT
This study aims to examine the effect of Current Ratio (CR), Quick Ratio
(QR), Debt to Assets Ratio (DAR), Debt to Equity Ratio (DER) on Profitability in
the banking sub-sector listed on the Indonesia Stock Exchange. The population in
this study is all financial statements of banking sub-sector companies listed on the
Indonesia Stock Exchange for the 2017-2021 period. Sampling was carried out
using the purposive sampling method with the criteria of all banking sub-sector
companies that did not have complete financial statement data during the 2017-
2021 period and banking sub-sector companies that did not occupy the 10 largest
banks in Indonesia in terms of assets for the 2017-2021 period. Then a sample of
10 companies was obtained with a sample of 50 companies' financial statements
for 5 years of observation. The analytical techniques used in this study are
classical assumption tests consisting of normality test, multicollinearity test,
autocorrelation test, heteroscedasticity test and multiple regression analysis,
correlation coefficient, determination coefficient (R2) and hypothesis testing
consisting of t-test (partially) and f-test (simultaneously).
The results of this study partially concluded that only Quick Ratio (QR)
has no effect on Return on Asset (ROA), while Current Ratio (CR), Debt to Assets
Ratio (DAR) and Debt to Equity Ratio (DER) affect Return on Asset (ROA).
Simultaneously Current Ratio (CR), Quick Ratio (QR), Debt to Assets Ratio
(DAR), Debt to Equity Ratio together have a significant effect on Return on
Assets (ROA).
Keywords: Current Ratio (CR), Quick Ratio (QR), Debt to Assets Ratio (DAR),
Debt to Equity Ratio (DER) and Return on Asset (ROA).