PENGARUH DEBT RATIO DAN TOTAL ASSET TURNOVER TERHADAP NET INCOME PERUSAHAAN LILI PROPERTY DI SURABAYA
Abstract
The purpose of this research is to explain the effects of efficiency in using
assets and long-term debts on profitability of Lily Property in Surabaya. This
company uses a credit from the Bank as its financial resource and owns many
assets for its business activities. This research uses the financial report of Lily
Property from April 2009 to March 2010. The method of data analysis used is
multiple linear regressions. The independent variables are debt ratio and total
asset turnover, while the dependent variable is net profit.
The Multiple linear regression analysis results indicates that the debt ratio
and total asset turnover have strong and significant effects on nett profits of Lily
Property to 97.3% and proven with p-value of 0,000 < 0,05. Partially, the debt
ratio has negative and significant effecst on nett profits with regression
coefficient of -0,210 and proven with p-value of 0,034 < 0,05 , while the total
asset turnover has positive and significant effects on nett profit with regression
coefficient of 1,041 and proven with p-value of 0,000 < 0,05. Based on the
analytical result, the company is advised to carefully manage its debt because a
debt has high risks, moreover the company should increase the total asset
turnover by increasing it’s rental income or decreasing it’s investments in fixed
assets in order to achieve a higher profit.