The Effect of Current Ratio, Debt to Equity Ratio, and Total Asset Turnover on The Financial Performance of Non-Cyclical Consumer Sector Companies In The 2020-2024 Period

Abstract

In investment activities, achieving high returns with minimal risk is the primary objective of investors. Analyzing a company’s performance is carried out to gain an overview of which companies are most suitable for investment. Several financial ratios are used as benchmarks for this analysis, including Total Asset Turnover (TATO), Debt to Equity Ratio (DER), Current Ratio (CR), and Return on Assets (ROA). Consumer non-cyclical companies are those that produce primary goods and services that are not affected by economic growth fluctuations. The sample data were taken from companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period, with a total of 20 companies as the sample. The testing, conducted using the Multiple Linear Regression method, shows that CR and TATO have a significant effect on ROA, while DER has no significant effect on ROA.