THE EFFECT OF WORKING CAPITAL TURNOVER AND CURRENT RATIO ON RETURN ON ASSETS AT PT GUDANG GARAM TBK FOR THE PERIOD 2010-2023

Abstract

This study aims to determine whether Working Capital Turnover and Current Ratio have an effect or not on Return On Asset at PT Gudang Garam Tbk for the 2010-2023 Period. This research uses descriptive method with quantitative approach. The population used in this study is the financial statements of PT Gudang Garam Tbk while the sample used is the balance sheet and income statement of PT Gudang Garam Tbk for the period 2010-2023. The data analysis method uses Descriptive Analysis Test, Classical Assumption Test, Multiple Linear Regression Test, Hypothesis Analysis Test, Correlation Coefficient Test, and Determination Coefficient Test. From the results of this study it can be concluded, that Working Capital Turnover has a partially negative and significant effect on Return On Asset, obtained a tcount value of -4,206 > 1,782 ttable with a significant level of 0,001 < 0,05. Current Ratio has no partial effect on Return On Asset, obtained a tcount value of 1,371 < ttable 1,782, with a significance level of 0,195 > 0,05. And Working Capital Turnover and Current Ratio simultaneously and significantly affect Return On Asset, and obtained an Fcount value of 8,209> Ftable 3,98, with a significance level of 0,007 <0.05.