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.