THE EFFECT OF FINANCIAL RATIOS, MACROECONOMIC VARIABLES TOWARD PROFITABILITY OF REAL ESTATE AND PROPERTY COMPANIES IN INDONESIA

Abstract

This study aims to determine the effect of the Current Ratio, Debt to Equity Ratio, Earning per Share, Price to Book Value, Inflation Rate, and Gross Domestic Product of Return on Equity Property and Real Estate sector in Indonesia. This research is quantitative research aiming to work out a systematically explain the facts and properties in an object in the study then do the merger between related variables in it with the presentation of secondary data from the financial report of IDX property and real estate companies. The samples are 38 companies that listed in Indonesia Stock Exchange before 2015 with period 2015 - 2020. The independent variables of this research are Current Ratio, Debt to Equity Ratio, Earning per Share, Price to Book Value, Inflation Rate, Gross Domestic Product and the dependent variable is Return on Equity. There will be 228 observation data. This data is analyzed by using the descriptive statistical analysis, classical inference test, multiple regression analysis, decision coefficient and hypothesis testing. The results of this research reveal the Current Ratio, Earnings per Share, Debt to Equity Ratio, Price to Book Value, Inflation Rate have a significant influence the Return on Equity