THE EFFECT OF TOTAL ASSET TURNOVER, DEBT TO EQUITY RATIO, CURRENT RATIO ON FINANCIAL PERFORMANCE

Abstract

Financial Performance is an important indicator in assessing the success of a company. Financial Performance is a result or achievement of the company's management ability to manage its assets effectively in a certain time. The success or not of a company can be evaluated based on the financial activities that have been carried out. This study aims to examine the influence of TATO, DER, CR on Financial Performance in manufacturing companies in the Basic Materials sector listed on the Indonesia Stock Exchange for the 2020-2023 period. The sample in this study is 300 annual financial statements. This research uses a quantitative approach with the STATA analysis tool. Data analysis techniques include Descriptive Analysis, Classical Assumption Test, Hypothesis Test, and Model Selection Test to test and explain the relationship between research variables. The results of this study show that TATO has no effect on Financial Performance, DER has a negative effect on Financial Performance, CR has no effect on Financial Performance. This research contributes to companies to provide consideration in efforts to improve the company's Financial Performance. The results of this study also provide input to companies regarding the importance of DER ratios for improving Financial Performance.