ANALYSIS ON THE INFLUENCE OF CURRENT RATIO, LEVERAGE RATIO, GROSS DOMESTIC PRODUCT, AND EXCHANGE RATE TOWARDS RETURN ON ASSET OF INDONESIAN PALM OIL PLANTATION COMPANIES LISTED AS MEMBER OF ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO) DURING PERIOD 2008 - 2014

Abstract

This study analyzed the influence of internal and external factors towards Return on Asset of 6 Indonesian Palm Oil Plantation Companies listed as member of Roundable on Sustainable Palm Oil (RSPO) during period 2008 – 2014. The problem stated in this research was the fluctuation of financial ratios and external factors affecting profitability. The purpose of this research was to analyze current Ratio, leverage, gross domestic product, and exchange rate towards ROA of 6 Indonesian Palm Oil Plantation Companies listed as member of Roundable on Sustainable Palm Oil (RSPO) during period 2008 – 2014. The methodology used in this research was quantitative research method using secondary and documentary data. The sampling method used was purposive sampling, with criteria of 6 palm oil plantation companies listed as member of RSPO and in IDX which provided audited annual report along with the ratios that were relevant to the variables during period 2008 – 2014. The analysis of this study used multiple linear regression analysis using Eviews9 as the statistical tool, with significance level of 0.05. The result showed that Current ratio had a positive significant influence towards dependent variable; Leverage ratio had a negative significant influence towards dependent variable, while GDP had a positive but insignificant influence along with and Exchange Rate which has a negative and insignificant influence towards ROA. Simultaneously all of the independent variables significantly influenced the ROA, with the coefficient of determinant in this research was 58.6%.