Abstract

This study aims to determine the effect of the liquidity ratios of Current Ratio
and Acid-test Ratio and profitability ratios are Return on Assets and Return on
Equity to changes in corporate profits at PT. Adaro Energy Tbk. Jakarta, using
statistical analysis method with SPSS version 17 with the number of 5 variables
consisting of 4 independent variables and 1 dependent variable and the amount of
observation data for six years from 2011-2016. This research uses multiple
regression analysis methods, coefficient of determination, test t, and test f.
Based on the research that the authors do, obtained a result of regression
equation Y = -3.323 + 15.166 X1- 15,707 X2 + 185,043 X3 – 60,840 X4. Means
that if the value of the Current Ratio variable, Acid-test Ratio, Return on Assets,
and Return on Equity equal to zero, then the variable value of the change in profit
is -3.323. In determination analysis resulting R equal to 0.996 which mean fourth
ratio have positive influence to earnings. While the coefficient of determination
(R2) is 0.992 which means that the four independent variables are able to affect the
profit of 99.2% while 0.8% influenced by other variables not examined in this
study. Cash Ratio and Cash Turnover, other profitability ratios are Net Profit
Margin, solvency ratios are Debt to Assets Ratio and Debt to Equity Ratio, activity
ratios are Total Assets Turn Over, Inventory Turn Over, Working Capital Turn
Over and other factors such as firm size , economic, and industrial effects.
Partially there is no positive and significant influence between Current Ratio,
Acid-test Ratio, Return on Assets, and Return on Equity to changes in corporate
earnings. And simultaneously there is no positive and significant influence between
Current Ratio, Acid-test Ratio, Return on Assets, and Return on Equity on changes
in corporate profits.
Keywords: Current Ratio, Acid-test Ratio, Return on Assets, Return on Equity,
and Profit Changes