THE EFFECT OF SALES VOLUME, DEBT LEVEL AND CASH RATIO ON RETURN ON EQUITY IN COMPANIES AFFECTED BY THE BOYCOTT

Abstract

This study aims to analyze the influence of sales volume, debt-to-equity ratio (DER), and cash-to-equity return (ROE) ratio in companies affected by the boycott and listed on the Indonesia Stock Exchange (IDX) for the 2021–2024 period. This study uses a quantitative approach with a double linear regression analysis method. The data used is secondary data in the form of annual financial statements from 36 observations. The results of the t-test showed that sales volume had a significant influence on ROE with a calculation value of 5.471 > 2.037 and a significance of 0.000 < 0.05, and the cash ratio also had a significant effect on ROE with a calculation value of 2.729 > 2.037 and a significance of 0.010 < 0.05. Meanwhile, the debt level had no significant effect on ROE with a calculation value of -0.015 < 2.037 and a significance of 0.917 > 0.05. The results of the F test showed that the independent variable simultaneously had an effect on the ROE with a Fcal value of 13.417 > Ftable of 2.901 and a significance of 0.000 < 0.05. The value of the determination coefficient (R²) is 0.557, which means that 55.7% of the variation in ROE can be explained by all three independent variables. The study concluded that sales volume and cash ratio have a significant influence on ROE, while debt levels have no partial effect.