The Effect of Total Asset Turnover (TATO) and Current Ratio (CR) on Return on Assets (ROA) with Debt-to-Asset Ratio (DAR) as a Mediating Variable in Transportation & Logistics Sector Companies Listed on the Indonesia Stock Exchange (2020–2024)

Abstract

This study aims to analyze and determine the influence of the independent variables Total Asset Turnover (TATO) and Current Ratio (CR) on the dependent variable Return on Asset (ROA), with Debt to Asset Ratio (DAR) as a mediating variable, in transportation and logistics sector companies listed on the Indonesia Stock Exchange for the 2020-2024 period. This research uses a quantitative approach with a total population of 40 companies. The sampling technique used is purposive sampling, resulting in 7 companies over a 5-year period, so that a total of 35 financial statements were processed. This study uses panel data regression analysis and the Sobel test to examine the mediating role, processed with EViews 13 software. Based on the results, it can be concluded that Total Asset Turnover (TATO) and Current Ratio (CR) each have a significant positive effect on Return on Asset (ROA). Meanwhile, TATO and CR have a positive but not significant effect on Debt to Asset Ratio (DAR), and DAR has a negative but not significant effect on ROA. Simultaneously, TATO, CR, and DAR affect ROA. The Sobel test results show that DAR is not able to mediate the effect of either TATO or CR on ROA