The Influence of Current Ratio, Price-to-Book Value, and Total Asset Turnover on Return on Assets at PT Indofood Sukses Makmur Tbk, Listed on the Indonesia Stock Exchange (2022–2024)

Abstract

This study aims to analyze the influence of the Current Ratio (CR), Price to Book Value (PBV), and Total Asset Turnover (TATO) on Return on Assets (ROA) at PT Indofood Sukses Makmur Tbk. The study employs a quantitative method using secondary data derived from the company's financial statements. Analysis was conducted using descriptive statistics, correlation tests, as well as partial and simultaneous testing. The results indicate that CR and PBV do not have a significant effect on ROA, whereas TATO has a positive and significant effect on ROA, demonstrating a strong relationship. Simultaneously, the three variables significantly influence ROA, with a coefficient of determination of 72.9%. Thus, TATO is the strongest variable influencing ROA, highlighting the crucial role of asset utilization effectiveness in enhancing the company's profitability.