Effect of Current Ratio (Cr), Quick Ratio (Qr), Debt To Asset Ratio (Dar) and Debt To Equity Ratio (Der) on Return On Assets (Roa)

This research is motivated by differences in the results of previous studies regarding the Effect of Current Ratio (CR), Quick Ratio (QR), Debt To Asset Ratio (DAR), and Debt To Equity Ratio (DER) on Return On Assets (ROA) in Companies Pharmaceutical Sub-Sector Listed on the Indonesia Stock Exchange for the 2015-2019 Period. This study aims to determine the effect of the Current Ratio (CR), Quick Ratio (QR), Debt To Asset Ratio (DAR), and Debt To Equity Ratio (DER) on Return On Assets (ROA). This study uses several data analyzes, namely descriptive analysis, model selection test, data selection method test (Chow test, Hausman test, and Langrange multiplier test), panel data regression analysis test, hypothesis testing (partial test and simultaneous test), and coefficients. determination by using the Eviews version 10 program. Based on the results of this study, it shows that the measurement results on the Current Ratio (X1) have no significant effect on Return On Assets (Y), Quick Ratio (X2) have no significant effect on Return On Assets (Y), Debt to Assets Ratio (X3) has an effect on Return On Asset (Y), and finally Debt to Equity Ratio (X4) has an effect on Return On Asset (Y).


Introduction
The inflation rate in 2015 which reached 0.17% had an impact on the performance of the pharmaceutical sub-industry companies which reduced people's purchasing power, especially when the rupiah exchange rate weakened to Rp. 13,121 per dollar (Permaysinta and Sawitri 2021). As a result, in 2015, the issuer's performance was below the expected target of 4.6%, and the average revenue fell to 10% due to a decrease in sales volume and the weakening of the rupiah. (Kontan.co.id 2015).
A very popular measuring tool used in assessing a company's liquidity and short-term ability to pay off its obligations (Susilawati 2012). The current ratio is sometimes called the working capital ratio (Santini and Baskara 2018). The current ratio is seen as a more reliable indicator than the working capital ratio Working capital is used to measure the ability to pay current liabilities with current assets. In general, the greater the working capital, the better the ability to repay debt. Capital is total assets minus total liabilities. Working capital is the current version of total capital.
The current ratio is the most common ratio for evaluating current assets and current liabilities, which are current assets divided by current liabilities (Faisal, Samben, and Pattisahusiwa 2018). The current ratio measures the ability to pay current liabilities with current assets, which is a ratio that shows the extent to which short-term receivables from creditors can be met with assets that are expected to be converted into cash in the near future.
The rate of return on total assets (rate of return on total assets), or simply return on total assets (Retrun On Assets = ROA), measures the success of the company in using assets to generate profits (Kuniawan, Arifati, and Andini 2016). ROA shows the company's Faculty of Islamic Economics and Business -UIN Sunan Gunung Djati Bandung ability to use all of its assets to generate after-tax profits. This ratio is important for the management to evaluate the effectiveness and efficiency of the company's management in managing all company assets. The greater the ROA, it means that the more efficient the use of the company's assets or in other words the same number of assets can generate greater profits, and vice versa. ROA is a ratio that reflects the company's ability to obtain results, namely net income on financial resources from the total assets that have been invested in the company.
ROE shows the company's ability to generate after-tax profits by using the company's own capital (Ammy 2021). This ratio is important for the management to be used as material to evaluate the effectiveness and efficiency of the company's management in managing their own capital which is carried out by the company's management. The greater the ROE, it means that the more efficient the use of company assets or in other words the same number of assets can generate greater profits, and vice versa. ROE is a ratio to measure the company's ability to generate net income on shareholder investment.
Asset structure is the determination of how much funds are allocated for each asset component, both current assets and fixed assets (Mustafa et al. 2022). The allocation for each asset component has an understanding of how much rupiah must be allocated to each asset component. Asset structure is the larger composition of current assets. Another opinion regarding the structure of assets is the balance or comparison between fixed assets and total assets.
It is concluded that asset structure is the determination of the amount of allocation or balance of funds for each component of assets, both current assets and fixed assets.
Describes the amount of assets that the company can guarantee as collateral when the Faculty of Islamic Economics and Business -UIN Sunan Gunung Djati Bandung company makes loans to creditors. Asset structure is the proportion of fixed assets owned by the company. Asset structure can be formulated by comparing current assets with total assets Assets are the resources owned by the company in carrying out its business activities.
Assets are a collection of various assets owned by the company that will be used to earn income during the current year and the following years (Setiawan 2006). Company assets or assets can be in the form of cash/cash, accounts receivable, office equipment, vehicles, machinery, buildings, land, and so on. The company's efforts to obtain these assets are by having two possible sources of funds, namely from the owner's capital deposit or creditor loans. If an asset is purchased with funds originating from the owner of the company, the share capital in the financial statements of financial position will increase by the price of the asset. If purchased with borrowed funds from creditors, the amount of debt in the company's statement of financial position will increase by the price of the asset.

Result and Discussion
In order to analyze more deeply, assets need to be grouped into several categories Parts (Susan 2019), including: Other non-current assets.
Assets are classified as current and non-current. This distinction is based on the level of speed or duration of the disbursement of assets back into cash (Sri Wahyuni et al. 2020).
1. Current assets Current assets include cash, other assets, or other sources that are expected to be converted into cash, or sold, or consumed over a normal period of time (usually one year).

2.
Long-term Investment Companies can also invest their funds in the form of assets which are classified as long-term investments.

3.
Fixed assets Fixed assets are tangible assets, which are relatively permanent, used in regular operations for more than one year, purchased with the intention of not being resold.
Meanwhile, during the 2016-2019 period, the performance of the pharmaceutical subindustry companies was uneven, some achieved profit growth, some lost a lot (Lestari 2020  is not too burdensome to pay off debt or short-term debt. The debt or debt is due immediately when it is recovered, so that it has a good impact on the return on assets (ROA), and the condition of the company is in a stable condition for the next 5-10 years. in 2019 of 38%. However, the calculation of this ratio is not important for investors, but is very important for creditors who provide credit to the company. The greater the debt-toasset ratio, the greater the risk that the company will not be able to repay its debts to creditors.
If the debt-to-asset ratio is large, creditors will be more careful in approving the company's credit application (Aisyah et al. 2020). From the data above, the development The highest increase occurred in 2019, with a debt to equity ratio of 59% which indicates that the company is in a very bad condition, because the company's debts or liabilities are getting bigger, which is a trend that is very dangerous for the company The current ratio or current ratio is a ratio that measures the company's ability to pay short-term debt or debt as soon as it is received in its entirety (Kisdayanti and Agustin 2018). The current ratio is to measure the company's ability to use existing assets to pay short-term debt (assets will be converted into cash in one year or business cycle).
The Quick Ratio is a quick test ratio that shows a company's ability to pay its shortterm liabilities with current assets, regardless of the value of its inventory. Inventory is one of the elements of liquid assets with the lowest level of liquid assets, often experiencing the lowest price fluctuations that often occur, usually causing losses during the liquidation period. Therefore, when calculating the quick ratio, the inventory value is not included in current assets.
Debt-to-asset ratio (DAR) is a debt ratio that measures the ratio of total debt to total assets. Debt to Asset Ratio (DAR) is a debt ratio used to measure the ratio of total debt to total assets. In other words, how much of the company's assets are financed through debt, or how the company's debt affects asset management. From the measurement results, if the ratio is high, it means that more funds are collected from the debt, so it will be difficult for the company to obtain additional loans because it is feared that the company will not be able to use its assets to pay off. debt. have. Likewise, if the ratio is low, the smaller the Faculty of Islamic Economics and Business -UIN Sunan Gunung Djati Bandung company is financed with debt. The formula for calculating the debt to asset ratio (DAR) is as follows: Debt to equity ratio is a ratio used for the following purposes: evaluating debt to equity ratio, which is obtained by comparing all debt (including current debt) with all activities (Shintia 2017). Debt to Equity Ratio (DER) is a ratio that compares long-term debt with equity. Then the Debt to Equity Ratio (DER) is used to evaluate the debt to equity ratio. While stating the Debt to Equity Ratio (DER) is a measure used to analyze financial statements to show the amount of collateral available to creditors. So it can be said that the Debt to Equity Ratio (DER) is a ratio that compares the company's debt with its capital.
The formula used to determine the ratio of debt to equity can be used to compare total debt to total equity.
The debt to equity ratio is the balance between debt and the company's own funds.
The higher the ratio ii means that the owned funds are smaller than their debts, for the company the amount of debt should not exceed their own funds to avoid excessive fixed burdens. For the conservative method, the maximum amount of debt is equal to the equity, meaning that when calculating the debt to equity ratio using the following formula, the maximum debt to equity ratio is 100%. The debt-to-equity ratio is the debt ratio represented by the relationship between the funds provided by the company's creditors (suppliers and banks) and the company's remaining shareholders' funds (Ardinindya, Djuwarsa, and Kusuma Dewi 2021).
We can compare debt with assets or equity (Trianto 2018). You can also see the relationship between the interest earned on the debt and the profits generated. The less debt, the lower the financial risk (financial risk). However, it is undeniable that every company needs debt to develop its business.