Optimizing Return on Assets (ROA) of Agricultural Sector Companies by Considering Interest Rate and Financial Leverage Factors

This study aims to determine the effect of Interest Coverage Ratio, Debt to Equity Ratio and Interest Rate of Return on Assets on Agriculture Sector in Indonesia Stock Exchange. This study used secondary data, with samples 9 agricultures companies in Indonesia Stock Exchange during the study period 2018-2022. Independent variables in this study are of Interest Coverage Ratio, Debt to Equity Ratio and Interest Rate of Return on Assets. This study used purposive sampling technique. The method of data analysis used classical assumption test, hypothesis test, multiple regression analysis, the F test and t test. Based on results of the study, only Interest Coverage Ratio have no significant effect on Return on Assets. Meanwhile, the F test result shows that of Interest Coverage Ratio, Debt to Equity Ratio and Interest Rate jointly have effect on Return on Assets.