PENGARUH RASIO LIKUIDITAS, FINANCIAL LEVERAGE DAN AKTIVITAS TERHADAP PROFITABILITAS PADA PERUSAHAAN SEMEN

Abstract

The purpose of this research is to find out the quick ratio, long term debt to equity and total asset turnover to the profitability on the cement companies which are listed on Indonesia Stock Exchange in 2010-2014 periods. The result of the research shows that quick ratio does not have any influence to the profitability. It means that, the short term business capital which in the form of current asset does not given any contribution to the profitability. The long term debt to equity has significant and negative influence to the profitability. It means that, when a company is unable to fulfill their obligation in the due date, the risk which will be suffered by a company will be larger and it can decrease their profitability. The total asset turnover has significant and positive influence to the profitability. In this case, the use of assets in the cement industry companies is quite effective and efficient so it can increase the profitability. The determination coefficient is 0.920 or 92%. Based on the result of the research, it is recommended that companies should increase their financial performance particularly on the liquidity management and corporate debt so it can increase their profitability.
Keywords: quick ratio, long term debt to equity, total asset turnover and return on asset.