Pengaruh Modal Kerja dan Debt To Asset Ratio Terhadap Profitabilitas

This research aims to determine the influence of working capital and debt to asset ratio on profitability. In this study, the objects used are mining companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. The independent variables used in this study are working capital and the debt to asset ratio, while the dependent variable used is profitability. The research method to be used is a deductive and quantitative descriptive approach. The data analysis technique that will be used is multiple regression. The sampling technique employs purposive sampling, resulting in a research sample of 25 companies, with 125 data points from mining companies listed on the Indonesia Stock Exchange for the period 2019-2023, using the SPSS Statistics 26 program. The results of this study indicate that working capital significantly affects profitability, meaning that good working capital management can increase ROA, while less efficient management can decrease it. On the other hand, the Debt to Asset ratio significantly affects profitability, meaning that a higher Debt to Asset Ratio can suppress ROA if the company cannot generate returns higher than its debt costs. However, in some cases, prudent leverage can help increase profitability if used effectively.