Article Sidebar

Download
Download Article

Main Article Content

Abstract

The consumer goods sector plays an important role in the Indonesian economy because it provides necessities with relatively fast cash turnover. In dynamic economic conditions, liquidity management can affect financial performance. This study aims to examine the effect of the Current Ratio (CR) on Return on Assets (ROA) in consumer goods companies listed on the Indonesia Stock Exchange (IDX). The study uses a quantitative, associative-causal approach. The population includes all consumer goods issuers on the IDX, with a purposive sample of 45 companies. Secondary data were obtained from annual financial reports for the 2018–2022 period on the IDX official website. The analysis uses simple linear regression. The results show that CR has a weak negative relationship with ROA, which is not statistically significant (p = 0.060), suggesting that higher liquidity is not always associated with higher profitability. The implications of these findings confirm that companies need to manage liquidity at an adequate level (not excessive) so that current assets do not become idle funds, while also increasing asset utilisation efficiency to optimise ROA.

Keywords

Current Ratio Return on Assets Liquidity Profitability Indonesia Stock Exchange

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Udayat, U., Esra, M. A., & Brastoro, B. (2026). The Effect of Current Ratio on Return on Assets in Consumer Goods Companies Listed on the Indonesia Stock Exchange. Golden Ratio of Data in Summary, 6(1), 240–251. https://doi.org/10.52970/grdis.v6i1.1830
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Cooper, D. R., & Schindler, P. S. (2014). Business Research Methods (12th ed.). McGraw-Hill Education.
  2. Daviesi, S., & Utam, A. A. G. S. (2025). Unveiling the quantitative impact of capital structure on firm value: A study of manufacturers of food, produce companies in South Africa. Accounting, 11(3), 181. https://doi.org/10.5267/j.ac.2025.5.002
  3. Deloof, M. (2003). Does working capital management affect the profitability of Belgian firms? Journal of Business Finance & Accounting, 30(3–4), 573–588. https://doi.org/10.1111/1468-5957.00008
  4. Eljelly, A. M. A. (2004). Liquidity–profitability trade-off: An empirical investigation in an emerging market. International Journal of Commerce and Management, 14(2), 48–61. https://doi.org/10.1108/10569210480000179
  5. Eryatna, E. N., Eltivia, N., & Handayawati, K. U. (2021). The Effect of Cash Turnover, Receivable Turnover, and Inventory Turnover Towards Profitability of Consumer Goods Companies in Indonesia. Advances in Economics, Business and Management Research/Advances in Economics, Business and Management Research. https://doi.org/10.2991/aebmr.k.210717.039
  6. Ester, E., Toni, N., Teng, S. H., & Hutagalung, G. (2022). The Effect of Financial Ratio on Profit Growth with Company Value as a Moderating Variable in Automotive Companies and Components Listed on the Indonesia Stock Exchange. International Journal of Social Science Research and Review, 5(9), 242. https://doi.org/10.47814/ijssrr.v5i9.436
  7. Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1–4. https://doi.org/10.11648/j.ajtas.20160501.11
  8. Gunawan, R., Widiyanti, M., Malinda, S., & Adam, M. (2022). The Effect Of Current Ratio, Total Asset Turnover, Debt To Asset Ratio, And Debt To Equity Ratio On Return On Assets In Plantation Sub-Sector Companies Listed On The Indonesia Stock Exchange. International Journal of Economic Business Accounting Agriculture Management and Sharia Administration (IJEBAS), 2(1), 19. https://doi.org/10.54443/ijebas.v2i1.139
  9. Hantono, H., Guci, S. T., Manalu, E. M. B., Hondro, N. A., Manihuruk, C. C., Angin, M. B. P.-, & Sinaga, D. C. (2019). Pengaruh Perputaran Kas, Perputaran Piutang, Perputaran Persediaan, Current Ratio, dan Debt to Equity Ratio, Total Assets Turn Over terhadap Profitabilitas. Owner, 3(1), 116. https://doi.org/10.33395/owner.v3i1.110
  10. Herdianti, G., Murnila, N. D., & Malinda, S. (2023). Analysis of profit growth in manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange. Gadjah Mada International Journal of Business, 20(1), 33–68.
  11. Husnah, E., & Setiadi, I. (2020). Determinasi Profitabilitas Pada Perusahaan Manufaktur Sektor Barang Konsumsi. Journal of Accounting Science, 4(1), 81. https://doi.org/10.21070/jas.v4i1.412
  12. Indonesia Stock Exchange. (2023). Financial and Annual Reports of Issuers Listed on the IDX. Jakarta: IDX. https://www.idx.co.id
  13. Irman, M., & Purwati, A. A. (2020). Analysis On The Influence Of Current Ratio, Debt to Equity Ratio, and Total Asset Turnover on Return On Assets On The Automotive and Component Company That Has Been Registered In the Indonesian Stock Exchange from 2011 to 2017. International Journal of Economics Development Research (IJEDR), 1(1), 36. https://doi.org/10.37385/ijedr.v1i1.26
  14. Irsan, M., & Rambe, M. F. (2021). Return On Asset : Current Ratio And Debt To Asset Ratio Companies In The Indonesian Stock Exchange. International Journal of Economic Technology and Social Sciences (Injects), 2(1), 289. https://doi.org/10.53695/injects.v2i1.304
  15. Johnston, M. P. (2017). Secondary data analysis: A method whose time has come. Qualitative and Quantitative Methods in Libraries, 3(3), 619–626.
  16. Karim, A., Widyarti, E. T., & Santoso, A. (2023). Effect of current ratio, total asset turnover, and size on profitability: Evidence from Indonesian manufacturing companies. Diponegoro International Journal of Business, 6(1), 57. https://doi.org/10.14710/dijb.6.1.2023.57-63
  17. Larasati, C. I., & Purwanto, P. (2022). How Financial Ratios and Firm Size Affect Profitability: Evidence from the Food and Beverages Industry in Indonesia. The Winners, 23(1), 43. https://doi.org/10.21512/tw.v23i1.7099
  18. Lubis, A., & Affandy, L. (2023). Liquidity and profitability of retail companies: Evidence from Indonesia. International Journal of Economics, Business and Management Research, 7(8), 45–56. https://doi.org/10.47747/ijebmr.v7i8.1084
  19. Marbun, N. R., Ginting, Y. A. br, Munthe, H., & Siregar, K. H. (2024). Influence of Return On Assets (ROA), Debt To Equity Ratio (DER), Current Ratio (CR), Debt To Asset Ratio (DAR) On Stock Returns In Food And Beverage Sector Manufacturing Companies Listed On The Indonesia Stock Exchange For The Period 2018 - 2022. Jurnal Ekonomi Bisnis & Entrepreneurship, 18(1), 112. https://doi.org/10.55208/jebe.v18i1.533
  20. Melani, I., Suroso, S., & Musqori, N. (2019). The Effect of Capital Adequacy and Liquidity on Profitability in Food and Beverage Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange (ISE) Period 2015-2018. Ilomata International Journal of Management, 1(1), 1. https://doi.org/10.52728/ijjm.v1i1.27
  21. Merry, A. J., & Widjaja, I. (2023). Pengaruh manajemen modal kerja terhadap profitabilitas perusahaan fast moving consumer goods di Indonesia dari tahun 2016-2021. Jurnal Manajemen Bisnis Dan Kewirausahaan, 7(3), 622. https://doi.org/10.24912/jmbk.v7i3.23874
  22. Novianti, D. R., Alie, J., & Purnamasari, E. D. (2021). Pengaruh Current Ratio dan Quick Ratio Terhadap Return On Asset. Jurnal Ilmu Sosial Manajemen Akuntansi Dan Bisnis, 2(4), 66. https://doi.org/10.47747/jismab.v2i4.497
  23. Oktavia, V. (2022). The Impact of Current Ratio, Return On Assets, and Company Size on Share Prices of Coal Companies Listed on the Indonesia Stock Exchange in 2016 - 2020. DergiPark (Istanbul University). https://dergipark.org.tr/tr/pub/usbed/issue/69168/1074227
  24. Oktaviani, N. A., Nurhayati, N., Safitri, R. D., Haryadi, D., & Wahyudi, W. (2024). Current ratio, return on assets, and company size to capital structure in manufacturing companies in the food and beverage subsector. International Journal of Applied Finance and Business Studies, 11(4), 860. https://doi.org/10.35335/ijafibs.v11i4.237
  25. Oweis, K. A. (2020). The impact of working capital management on the firm's profitability. International Journal of Advanced And Applied Sciences, 7(11), 67. https://doi.org/10.21833/ijaas.2020.11.007
  26. Pallant, J. (2020). SPSS Survival Manual: A Step-by-Step Guide to Data Analysis using IBM SPSS (7th ed.). Routledge.
  27. Pangestuti, I. R. D., Pridarsanti, K. Y., & Robiyanto, R. (2021). Location, Working Capital, Corporate Governance, and Profitability: The Case of Indonesian Manufacturing Firms. International Journal of Business and Society, 22(2), 881. https://doi.org/10.33736/ijbs.3765.2021
  28. Paramitha, D., & Sucipto, S. (2024). Determination Of Return On Assets: Analysis Of Solvency Ratio And Liquidity Ratio. Jurnal AKSI (Akuntansi Dan Sistem Informasi), 9(2). https://doi.org/10.32486/aksi.v9i2.762
  29. Raharjo, D. S., & Limakrisna, N. (2023). LQ45 Company Profitability on the IDX for the 2021 Period Through the Effect of the Current Ratio and Receivable Turnover. International Journal of Professional Business Review, 8(7). https://doi.org/10.26668/businessreview/2023.v8i7.2931
  30. Rahmaita, R., & Nini, N. (2021). Pengaruh Perputaran Modal Kerja, Likuiditas Dan Leverage Terhadap Profitabilitas (Studi Kasus Pada Sub Sektor Makanan Dan Minuman Yang Terdaftar Di Bursa Efek Indonesia Periode 2014-2018). Menara Ilmu, 15(1). https://doi.org/10.31869/mi.v15i1.2487
  31. Rahmawati, M., Anggraeni, P. R., Maulan, S. T., & Haryadi, D. (2024). Working capital and liquidity to the profitability of manufacturing companies listed on the IDX in 2019-2022. International Journal of Applied Finance and Business Studies, 11(4), 740. https://doi.org/10.35335/ijafibs.v11i4.215
  32. Rambe, I., & Datuk, B. (2021). Return On Assets: Debt To Asset Ratio And Current Ratio In Companies Listed On The Indonesia Stock Exchange. International Journal of Economic Technology and Social Sciences (Injects), 2(1), 274. https://doi.org/10.53695/injects.v2i1.391
  33. Rodríguez, V., Aguilar, H., Delgado, F., Cruz, L., Benavides, A., Salazar, C., & Escobar, B. (2021). Meta-study on the relationship between profitability and liquidity of enterprises. International Journal of Management and Economics, 57(2), 202–220. https://doi.org/10.1007/s40622-021-00280-y
  34. Ryadi, T., & Abundanti, N. (2023). Pengaruh Rasio Keuangan Terhadap Pertumbuhan Laba Pada Industri Consumer Goods Di Bursa Efek Indonesia. E-Jurnal Manajemen Universitas Udayana, 12(8), 865. https://doi.org/10.24843/ejmunud.2023.v12.i08.p06
  35. Saragih, J. L. (2021). Pengaruh Current Ratio, Total Assets Turn Over, Dan Debt To Assets Ratio Terhadap Return On Assets Pada Perusahaan Makanan Dan Minuman Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Riset Akuntansi & Keuangan, 49. https://doi.org/10.54367/jrak.v7i1.1163
  36. Sekaran, U., & Bougie, R. (2019). Research Methods for Business: A Skill-Building Approach (8th ed.). Wiley.
  37. Simbolon, K. V., Salindeho, J. K., & Karinda, A. F. (2022). Working Capital, Firm Size, Solvability, And Liquidity Towards Profitability Of The Consumer Goods Industry. Klabat Journal of Management, 3(1), 34. https://doi.org/10.60090/kjm.v3i1.808.34-45
  38. Sinaga, E. R., & Ane, L. (2021). Pengaruh Sales Growth, Perputaran Kas Dan Likuiditas Terhadap Profitabilitas Perusahaan (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek IndonesiaTahun 2017-2019). NIAGAWAN, 10(3), 272. https://doi.org/10.24114/niaga.v10i3.28184
  39. Sugiartini, N. K., & Dewi, S. K. S. (2019). Pengaruh Likuiditas Dan Modal Kerja Terhadap Profitabilitas Pada Perusahaan Industri Barang Kosumsi. E-Jurnal Manajemen Universitas Udayana, 8(9), 5401. https://doi.org/10.24843/ejmunud.2019.v08.i09.p03
  40. Sugiartini, N. K., & Dewi, S. K. S. (2019). Pengaruh Likuiditas Dan Modal Kerja Terhadap Profitabilitas Pada Perusahaan Industri Barang Kosumsi. E-Jurnal Manajemen Universitas Udayana, 8(9), 5401. https://doi.org/10.24843/ejmunud.2019.v08.i09.p03
  41. Sugiyono. (2021). Quantitative, Qualitative, and R&D Research Methods. Bandung: Alfabeta.
  42. Suhendry, W. (2021). Effect of Debt to Equity Ratio and Current Ratio on Company Value with Return on Assets as Intervening Variable in Consumer Goods Industrial Companies Listed on the Indonesia Stock Exchange for the 2015–2018 Period. Journal of Economics, Finance and Management Studies, 4(8). https://doi.org/10.47191/jefms/v4-i8-22
  43. Syafruddin, M., Weinanto, C. J., & Haryani, H. (2023). Evidence of Financial Ratio Impact on Non-Financial Firm Profitability. Accounting Analysis Journal, 12(2), 102. https://doi.org/10.15294/aaj.v12i2.70466
  44. Syahputri, A., Putra, H. S., Julyanthry, J., Sari, E. P., & Putri, D. E. (2022). Effect of Current Ratio and Debt to Asset Ratio on Return On Assets Moderated by Firm Size. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(1), 191. https://doi.org/10.29040/ijebar.v6i1.4418
  45. Vensca, S. N., Mas'adah, N., & Astuti, S. Y. (2024). Can Financial Ratios Affect Profit Growth In Food And Beverage Companies? AKSY Jurnal Ilmu Akuntansi Dan Bisnis Syariah, 6(2), 270. https://doi.org/10.15575/aksy.v6i2.34721
  46. Wen, C. (2024). The influence of current ratio, debt-to-equity ratio, working capital turnover, and inventory turnover on return on assets, based on firm size, for consumer goods industry companies listed on the Indonesia Stock Exchange, 2018–2022. International Journal of Research and Analytical Reviews, 11(2), 807–818. https://doi.org/10.37278/ijrar24b2763
  47. Widiasmara, A., Kusherawati, A., Cahyaningati, R., & Paramita, R. W. (2022). The effect of current ratio, debt to equity ratio, return on assets, and net profit margin on profit growth. Assets: Scientific Journal of Accounting, Finance and Taxation, 6(1), 8–15. https://doi.org/10.30741/assets.v6i1.831
  48. Yulita, N., & co-authors. (2023/2024). Improving firm value: The role of profitability–liquidity trade-off (BEI Manufacturing 2016–2023). International Journal of Accounting, Finance and Economics, ?(1), https://doi.org/10.55217/ijafae.2112
  49. Zaman, M., & Singh, R. (2024). Defining return on assets (ROA) in empirical corporate finance research: A critical review. Zenodo. https://doi.org/10.5281/zenodo.10901886

Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.