PENGARUH HUTANG, CURRENT RATIO, DAN DEBT TO TOTAL ASSETS RATIO TERHADAP PROFITABILITAS

Abstract

This research aimed to examine the effect of short-term debt, long-term debt, current ratio and debt to total asset
ratio on profitability which was measured by return on asset. The research was causal-comparative. While, the
data collection technique used purposive sampling, in which the sample was hased on criteria given. In line with,
there were 6 pharmacies companies which listed on Indonesian Stock Exchange during 2012-2018, as sample,
Moreover, the data were secondary in which taken from Indonesia Stock Exchange and its website, i.e.
http://www.idx.co.id/. Furthermore, the data analysis technique used multiple linier regression with SPSS
(Statistical Product and Service Solution) 23. The research result concluded short-term debt and current ratio
had positive and significant effect on profitability. On the other hand, long-term debt had negative and
significant effect on profitability. Additionally, the use of short-term debt, long-term debt and current ratio could
affect profitability. In addition, total debt to total asset ratio had insignificant effect on profitability
Keywords: short-term debt, long-term debt, current ratio, total debt to total asset, profitability.