THE IMPACT OF ASSETS TOWARD PROFITABILITY DETERMINED OF LISTED INFORMATION TECHNOLOGY PRODUCT COMPANIES

Abstract

Technology industry is one of the biggest industries in the world right now. The rise of gadgets such as smartphones and tablets mean that technology industry will keep improving at least in the near future. This research is interested in the financial health of the technology industries and the key indicators. Using purposive sampling, 8 technology companies are chosen using their financial reports from 2012 to 2016 for a total of 40 samples. Statistical analysis used include descriptive statistics, classical assumption testing (normality test, multicollinearity test, heteroscedasticity test, autocorrelationt test), multiple regression model analysis, and hypothesis testing (T-Test and F-test). This research aims to find the influence of Quick Ratio (QR), Inventory Turnover (ITO), and Fixed Asset Turnover (FATO) on the dependent variables Return on Asset (ROA) and Return on Equity (ROE). Final analysis suggests that ITO has a positive significant influence towards ROA and QR has a negative significant influence towards ROE.