THE EFFECT OF CURRENT RATIO (CR), DEBT TO EQUITY RATIO (DER), AND WORKING CAPITAL TURNOVER (WCT) ON RETURN ON EQUITY (ROE) AT PT. INDOCEMENT TUNGGAL PRAKARSA, TBK
Abstract
This study aims to determine the effect of Current Ratio (CR), Debt to Equity Ratio (DER), and Working Capital Turnover (WCT) on Return On Equity (ROE) at PT. Indocement Tunggal Prakarsa Tbk for the period 2015–2024. The type of research used is associative quantitative research using the company's financial report data for 10 years. Data analysis techniques used are classical assumption tests, multiple linear regression analysis, correlation and determination coefficients, t-tests, and F-tests with the help of the SPSS version 22 program. The results of the study indicate that Current Ratio (CR) and Debt to Equity Ratio (DER) have a partial significant effect on Return On Equity (ROE), while Working Capital Turnover (WCT) does not have a partial significant effect on Return On Equity (ROE). Simultaneously, Current Ratio (CR), Debt to Equity Ratio (DER), and Working Capital Turnover (WCT) have a significant effect on Return On Equity (ROE). The results of this study indicate that the company's ability to manage liquidity and capital structure has an important role in increasing the company's profitability.
Keywords:
Current Ratio (CR), Debt to Equity Ratio (DER), Working Capital Turnover (WCT), and Return On Equity (ROE)
References
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Putri, HAZ, Andi, K., Indra, Z., & Sukmasari, D. (2022). Analysis of the Effect of Total Assets Turnover, Working Capital Turnover, Debt to Equity Ratio, and Current Ratio on Company Financial Performance. Journal of Applied Business Administration , 4 (2), 128–139.
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Safar, DZ (2020). The Effect of Working Capital Efficiency “Working Capital Turnover” and Debt to Equity on Profitability “Return on Equity” in Several Food and Beverages Manufacturing Companies Listed on the Indonesia Stock Exchange (IDX) for the 2009-2013 Period. UMMI Accounting Journal , 1 (1), 79–100.
Sinaga, R., Marbun, BS, Sianturi, JR, & Sitorus, JS (2020). The Effect of Working Capital Turnover, Current Ratio, and Firm Size on Profitability in Manufacturing Companies in the Basic and Chemical Industry Sectors Listed on the Indonesia Stock Exchange (IDX) for the 2014-2017 Period. MEA Scientific Journal , 4 (3), 601–621.
Utami, MT, & Manda, GS (2021). The effect of working capital turnover (WCT), current ratio (CR), and total assets turnover (TATO) on profitability. Monetary-Journal of Accounting and Finance , 8 (1), 1–8.
Apriliyani, D., & Nugroho, RD (2024). The Effect of Current Ratio and Debt to Equity Ratio on Return on Equity at PT Bumi Serpong Damai, Tbk for the Period 2011–2023. Scientific Journal of Economics and Management , 2 (8), 727–739.
Argananta, RJ, & Hidayat, I. (2017). ANALYSIS OF THE EFFECT OF CR, DER AND TATO ON ROE AT PT. MUSTIKA RATU TBK. Journal of Management Science and Research (JIRM) , 6 (10).
Awaliyyah, N., Asih, VS, & Badriyah, M. (2021). The Impact of Working Capital Turnover and Debt to Equity Ratio on Return on Investment at PT Ultra Jaya Milk Industry & Trading Company Tbk. Indonesian Journal of Economics and Management , 1 (3), 478–488
.
Balqish, AT (2020). The Effect of CR and DER on ROE in Retail Trading Companies on the IDX for the 2015-2018 Period. Owner: Research and Accounting Journal , 4 (2), 657–666.
Butar-Butar, V., & Sari, EP (2024). The Effect of Current Ratio, Debt to Asset Ratio, and Debt to Equity Ratio on Return on Equity in Computer Services & Equipment Companies Listed on Idn Financial in
2017-2021. Management, Accounting, Islamic Banking and Islamic Economic Journal , 2 (1), 124–135.
Christina, C., Monica, M., Aurelia, A., Fitria, S., Lina, L., & Panggabean, MS (2019). The Effect of Current Ratio, Working Capital Turnover, Debt to Equity Ratio, and Total Assets Turnover on Return on Investment in Food and Beverage Companies Listed on the Indonesia Stock Exchange. Going Concern: Journal of Accounting Research , 14 (4), 408–422.
Kasmir. (2019). Financial Report Analysis . Rajawali Pers, 2019.
Desi, M., & Arisudhana, D. (2020). The effect of current ratio, debt to equity ratio, return on assets, working capital turnover on profit growth (Empirical study of food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange for the 2014-2018 period). Journal of Accounting and Finance , 9 (2), 153–166.
Hendawati, H. (2017). Analysis of current ratio, debt to equity ratio and total asset turnover on return on equity. Jurnal Sikap , 1 (2), 97–111.
Liza, M., Budianto, E., & Khasanah, U. (2022). The Effect of Current Ratio and Debt to Equity Ratio on Return on Equity in Coal Subsector Companies. POINT: Journal of Economics and Management , 4 (1), 15–26.
Nada, NC, & Hasanuh, N. (2021). The Effect of Current Ratio and Debt to Equity Ratio on Return on Equity. COMPETITIVE Journal of Accounting and Finance , 5 (2), 77–82.
Sugiyono, D. (20 20). Educational research methods using quantitative, qualitative and R&D approaches.
Purba, IR, & Mahendra, A. (2022). The effect of working capital turnover (WCT), current ratio (CR), debt to equity ratio (DER), and return on assets (ROA) on company value in property and real estate companies listed on the Indonesia Stock Exchange for the 2017-2020 period. Journal of Accounting & Finance Research , 61–76.
Putri, HAZ, Andi, K., Indra, Z., & Sukmasari, D. (2022). Analysis of the Effect of Total Assets Turnover, Working Capital Turnover, Debt to Equity Ratio, and Current Ratio on Company Financial Performance. Journal of Applied Business Administration , 4 (2), 128–139.
Ghozali, I. (2019). Multivariate analysis application of IBM SPSS 23. Diponegoro University Publishing Agency, Semarang , 23 .
Safar, DZ (2020). The Effect of Working Capital Efficiency “Working Capital Turnover” and Debt to Equity on Profitability “Return on Equity” in Several Food and Beverages Manufacturing Companies Listed on the Indonesia Stock Exchange (IDX) for the 2009-2013 Period. UMMI Accounting Journal , 1 (1), 79–100.
Sinaga, R., Marbun, BS, Sianturi, JR, & Sitorus, JS (2020). The Effect of Working Capital Turnover, Current Ratio, and Firm Size on Profitability in Manufacturing Companies in the Basic and Chemical Industry Sectors Listed on the Indonesia Stock Exchange (IDX) for the 2014-2017 Period. MEA Scientific Journal , 4 (3), 601–621.
Utami, MT, & Manda, GS (2021). The effect of working capital turnover (WCT), current ratio (CR), and total assets turnover (TATO) on profitability. Monetary-Journal of Accounting and Finance , 8 (1), 1–8.
Published
2026-06-05
How to Cite
Wulandari, W., Wulandari, W., & Rimawan, M. (2026). THE EFFECT OF CURRENT RATIO (CR), DEBT TO EQUITY RATIO (DER), AND WORKING CAPITAL TURNOVER (WCT) ON RETURN ON EQUITY (ROE) AT PT. INDOCEMENT TUNGGAL PRAKARSA, TBK. Jesya, 9(2), 1262-1273. https://doi.org/https://doi.org/10.36778/jesya.v9i2.2758
Section
Articles
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