THE EFFECT OF CURRENT RATIO ON RETURN ON ASSETS AT PT CAHAYA PELITA ANDHIKA IN CENTRAL TAPANULI REGENCY

Abstract

This study aims to determine the Effect of Current Ratio on Return on Assets at PT Cahaya Pelita Andhika, Central Tapanuli Regency. The type of research used in this study is a quantitative research method with a descriptive correlational approach. The sample in this study is the financial statements of PT Cahaya Pelita Andhika, Central Tapanuli Regency 2020-2024. The results of the study show that based on the analysis of the coefficient of determination obtained of 0.032, this means that what occurs in the variation of the dependent variable Return on Assets (Variable Y) 3.2% is determined by the independent variable Current Ratio (Variable X) and the remaining 96.8% is determined by other factors not discussed in this study. From the results of the t-test in the study, it is known that the calculated t value of the Current Ratio is 0.770, greater than the t table of 2.10092 (0.770> 2.10092) and the probability value is 0.451> 0.05. Therefore, the Current Ratio (X) variable has a significant effect on Return on Assets (Y) at PT Cahaya Pelita Andhika, Central Tapanuli Regency. This means that Ho is rejected and Ha is accepted.