Leverage Analysis and The Influence on Profitability (Return on Investment) at PT. PLN (Persero) Period 2004-2022

Abstract

The purpose of this study was to analyze the effect of debt to asset ratio, debt service coverage ratio, tangible asset debt coverage, cash flow to debt ratio, BOPO on return on investment, and to analyze the effect of debt to asset ratio, debt service coverage ratio, tangible asset debt coverage, cash flow to debt ratio to return on investment mediated by BOPO at PT PLN (Persero). This study uses a quantitative descriptive approach. The technique used in sampling using non-probability sampling with purposive sampling method. The method of data collection using the Consolidated Financial Statements of PT. PLN (Persero) period 2004-2022. Data were analyzed using multiple regression analysis (multiple regression) and path analysis (Path Analysis) with statistical package for the social sciences (SPSS) version 26. The results showed that 1) Debt to Asset Ratio had a negatif effect and did not significant on Return On Investment, 2) Debt Service Coverage Ratio has a negatif and significant effect on Return On Investment, 3) Tangible Asset Debt Coverage has a negatif and insignificant effect on Return On Investment, 4) Cashflow to Debt Ratio has a negatif and significant effect on Return On Investment, 5) BOPO has a positive and insignificant effect on Return On Investment, 6) based on the analysis of the influence of Debt to Asset Ratio, Debt Service Coverage Ratio, Tangible Asset Debt Coverage, Cashflow to Debt Ratio to Return On Investment through BOPO obtained 1) indirectly Debt to As set Ratio  through BOPO has no significant effect on Return On Investment, 2) directly Debt Service Coverage Ratio through BOPO has a significant effect on Return On Investment, 3 ) indirectly Tangible Asset Debt Coverage through BOPO has no significant effect on Return On Investment, 4) Directly Cashflow to Debt Ratio through BOPO has a significant effect on Return On Investment.