ANALYSIS OF THE EFFECT OF CURRENT RATIO, TOTAL TURN OVER ASSETS, DEBT TO EQUITY RATIO AND NET PROFIT MAGRIN ON CHANGES OF PROFIT WITH ON EQUITY RETURN AS INTERVENING VARIABLES ON PHARMACEUTICAL COMPANIES LISTED IN INDONESIA STOCK EXCHANGE (BEI) 2013-2017 PERIOD

Abstract

This study aims to determine the effect of Current Ratio, Total Asset Turn Over, Debt to Equity Ratio and Net Profit margin on Changes in Profit with Return On Equity as an Intervening variable in pharmaceutical companies listed on the Indonesia Stock Exchange (BEI) for the 2013-2017 period. The population in this study amounted to 10 pharmaceutical sector companies listed on the Indonesia Stock Exchange with sampling techniques using purposive sampling obtained as many as 7 companies with a five- year period from 2013 to 2017. This type of research uses a type of quantitative method with secondary data obtained from ICMD and www.idx.co.id.
Data analysis in this study uses descriptive analysis, classical assumption test, coefficient of determination, t test and path analysis (analysis path). The results showed that CR had a significant effect on ROE but had no effect on Profit Change. TATO has no significant effect on ROE or Profit Change. DER has a significant effect on ROE but has no significant effect on Profit Change. NPM has no significant effect on ROE or Profit Change. ROE has a significant effect on Profit Change. ROE is able to be an Intervening variable between CR with Profit Change, TATO with Change in Profit, DER with Change in Profit and NPM with Change in Profit.
Keywords : Current Ratio, Total Asset Turn Over, Debt to Equity Ratio, Net Profit Margin, Return On Equity and Change in Profit.