Abstract:
The development of the insurance sector provides excellent investment
opportunities that can attract investors to invest their capital. But before making
an investment there are several important aspects that need to be understood, one
of which is the performance of the company. The better the company's
performance, the higher the demand for shares so as to increase the company's
share price. It should also be noted to ensure that the company's performance can
explain the company's economic condition and prospects for future growth. One
way that can be used is by analyzing financial ratios, theirei arei 4 financial ratio
indicators that can bei uiseid to eivaluiatei thei financial peirformancei of a company. Howeiveir, in this stuidy only 2 indicators will bei uiseid, nameily thei profitability
ratio and thei solveincy ratio. In this reiseiarch, thei profitability ratios uiseid arei Reituirn on Asseit (ROA) and Neit Profit Margin (NPM) whilei thei solveincy ratios
arei Deibt to Asseits Ratio (DAR) and Deibt to Eiquiity Ratio (DEiR). Thei puirposei of
this stuidy is to deiteirminei thei eiffeict of Deibt to Asseits Ratio (DAR), Deibt to Eiquiity
Ratio (DEiR) and Neit Profit Margin (NPM) on Reituirn on Asseit (ROA). This
reiseiarch uiseis Muiltiplei Lineiar Reigreission (MLR). This meithod is uiseid to
deiteirminei and find ouit how muich influieincei two or morei indeipeindeint variableis
havei on onei deipeindeint variablei. Thei data uiseid in this stuidy arei seicondary data
obtaineid from thei financial stateimeints of 10 insuirancei companieis listeid on thei Indoneisia Stock Eixchangei (IDX) in 2011-2021. Baseid on data analysis conduicteid
on thei financial stateimeints of theisei companieis, it can bei concluideid that Deibt to
Asseits Ratio (DAR), Deibt to Eiquiity Ratio (DEiR) and Neit Profit Margin (NPM)
havei a positivei and significant eiffeict as weill as a partial and simuiltaneiouisly eiffeict
on Reituirn on Asseit (ROA).
