Effect of Current Ratio and Debt to Asset Ratio Against Return on Assets (Empirical Study on Pharmaceutical Sector Companies Listed on the Indonesia Stock Exchange (BEI) 2016 – 2020 Period)

Dijan Mardiati(1*), Selvi Putri Permatasari(2),

(1) Faculty of economic and business, Universitas Pamulang
(2) Faculty of economic and business, Universitas Pamulang
(*) Corresponding Author

DOI: https://doi.org/10.26858/jo.v8i1.32910


This study aims to determine the effect of Current Ratio (CR) and Debt to Asset Ratio (DAR) on Return On Assets (ROA). The type of research used in this research is descriptive research that uses a quantitative approach. The type of data used in this research is secondary data. The data source used in this study is the financial statements of pharmaceutical sector companies listed on the Indonesia Stock Exchange for the 2016 – 2020 period . The sampling technique in this study used purposive sampling and obtained a research sample of 4 companies with a total of 20 research sample data. The analysis technique used descriptive statistical analysis, Chow test, Hausman test, then classic assumption test consisting of normality test, multicollinearity test, heteroscedasticity test, and autocorrelation test. Then test multiple linear regression analysis, then test the hypothesis by using the t test, F test, and the coefficient of determination. Data analysis using software Eviews version 12. The results of this study indicate that the Current Ratio (CR) has a negative and significant effect on Return On Assets (ROA) based on the results of tcount 4.173648 > ttable 2.10982, with a significance value of 0.0009 less than 0.05. While the Debt to Asset Ratio (DAR) has no effect on Return On Assets (ROA) based on the results of the tcount 2.089533 < ttable 2.10982, with a significance value of t of 0.0554 which is greater than 0.05. Simultaneously Fcount 49.81422 > Ftable 3.59, with a probability significance value of 0.0008 less than 0.05, then the Current Ratio (CR), Debt to Asset Ratio (DAR) together have a significant effect on Return On Assets (ROA).


Current Ratio (CR); Debt to Assets Ratio (DAR); Return On Assets (ROA)

Full Text:



Banerjee, D. (2020). The COVID-19 outbreak: Crucial role the psychiatrists can play. Asian Journal of Psychiatry, 50, 102014.

Benchimol, E. I., Smeeth, L., Guttmann, A., Harron, K., Moher, D., Petersen, I., Sørensen, H. T., von Elm, E., Langan, S. M., & Committee, R. W. (2015). The REporting of studies Conducted using Observational Routinely-collected health Data (RECORD) statement. PLoS Medicine, 12(10), e1001885.

David, K. B., & Adebisi, Y. A. (2020). Proposed model for hospital and community pharmacy services during COVID-19 pandemic in Nigeria. International Journal of Pharmacy Practice, 28(5), 544–545.

de Bruin, Y. B., Lequarre, A.-S., McCourt, J., Clevestig, P., Pigazzani, F., Jeddi, M. Z., Colosio, C., & Goulart, M. (2020). Initial impacts of global risk mitigation measures taken during the combatting of the COVID-19 pandemic. Safety Science, 128, 104773.

Elo, S., Kääriäinen, M., Kanste, O., Pölkki, T., Utriainen, K., & Kyngäs, H. (2014). Qualitative content analysis: A focus on trustworthiness. SAGE Open, 4(1), 2158244014522633.

Guvensan, M. A., & Yavuz, A. G. (2011). On coverage issues in directional sensor networks: A survey. Ad Hoc Networks, 9(7), 1238–1255.

Hou, C., Chen, J., Zhou, Y., Hua, L., Yuan, J., He, S., Guo, Y., Zhang, S., Jia, Q., & Zhao, C. (2020). The effectiveness of quarantine of Wuhan city against the Corona Virus Disease 2019 (COVID‐19): A well‐mixed SEIR model analysis. Journal of Medical Virology, 92(7), 841–848.

Liang, H., & Acharya, G. (2020). Novel corona virus disease (COVID-19) in pregnancy: What clinical recommendations to follow?

Liu, Y., Lee, J. M., & Lee, C. (2020). The challenges and opportunities of a global health crisis: the management and business implications of COVID-19 from an Asian perspective. Asian Business & Management, 19(3), 277–297.

Mercer, T. R., & Salit, M. (2021). Testing at scale during the COVID-19 pandemic. Nature Reviews Genetics, 22(7), 415–426.

Newman, E. (2010). Critical human security studies. Review of International Studies, 36(1), 77–94.

Organization, W. H. (2006). The world health report 2006: working together for health. World Health Organization.

Park, J., & Chung, E. (2021). Learning from past pandemic governance: Early response and Public-Private Partnerships in testing of COVID-19 in South Korea. World Development, 137, 105198.

Rampal, L., Liew, B. S., Choolani, M., Ganasegeran, K., Pramanick, A., Vallibhakara, S. A., Tejativaddhana, P., & Hoe, V. C. (2020). Battling COVID-19 pandemic waves in six South-East Asian countries: A real-time consensus review. Med J Malaysia, 75(6), 613–625.

Rizou, M., Galanakis, I. M., Aldawoud, T. M. S., & Galanakis, C. M. (2020). Safety of foods, food supply chain and environment within the COVID-19 pandemic. Trends in Food Science & Technology, 102, 293–299.

Salgotra, R., Gandomi, M., & Gandomi, A. H. (2020). Time series analysis and forecast of the COVID-19 pandemic in India using genetic programming. Chaos, Solitons & Fractals, 138, 109945.

Setayesh, S., & Mackey, T. K. (2016). Addressing the impact of economic sanctions on Iranian drug shortages in the joint comprehensive plan of action: promoting access to medicines and health diplomacy. Globalization and Health, 12(1), 1–14.

Suppawittaya, P., Yiemphat, P., & Yasri, P. (2020). Effects of social distancing, self-quarantine and self-isolation during the COVID-19 pandemic on people’s well-being, and how to cope with it. International Journal of Science and Healthcare Research, 5(2), 12–20.

Vearey, J., de Gruchy, T., & Maple, N. (2021). Global health (security), immigration governance and Covid-19 in South (ern) Africa: An evolving research agenda. Journal of Migration and Health, 3, 100040.

Weinberger, D. M., Chen, J., Cohen, T., Crawford, F. W., Mostashari, F., Olson, D., Pitzer, V. E., Reich, N. G., Russi, M., & Simonsen, L. (2020). Estimation of excess deaths associated with the COVID-19 pandemic in the United States, March to May 2020. JAMA Internal Medicine, 180(10), 1336–1344.

Williams, C. (2007). Research methods. Journal of Business & Economics Research (JBER), 5(3).

Yilmaz, K. (2013). Comparison of quantitative and qualitative research traditions: Epistemological, theoretical, and methodological differences. European Journal of Education, 48(2), 311–325.

Yu, Z., Razzaq, A., Rehman, A., Shah, A., Jameel, K., & Mor, R. S. (2021). Disruption in global supply chain and socio-economic shocks: a lesson from COVID-19 for sustainable production and consumption. Operations Management Research, 1–16.

Article Metrics

Abstract view : 32 times | PDF view : 7 times


  • There are currently no refbacks.

Copyright (c) 2022 Dijan Mardiati, Selvi Putri Permatasari

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.