THE INFLUENCE OF EPS, DER, TATO AND CR TOWARDS PROFITABILITY RATIO IN PROPERTY AND REAL ESTATE COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

Abstract

This research aimed to examine the factor that influence company’s profitability in property and real estate sectors companies in Indonesia. The research objective is to determine the influence of financial ratios factors that influence the company profitability. Variables that used in this research are EPS, DER, TATO, and CR. The methodology uses a quantitative method with multiple regression analysis to analyze the influence of independent variables toward the dependent variable. This sample adopt purposive sampling and it was taken from IDX and company official website that listed for period of 2014-2017. The result shows that EPS, TATO and CR has partially positive significant influence toward return on equity. However the DER has insignificant influence towar return on equity. Therefore all independent variables has significant simultaneous influence toward the profitability that earnings per share, debt to equity ratio, total assets turnover and current ratio could describe the return on equity in amount 33.6789%. While of 66.32% is explained by other variables which are not examined in this research.