Purpose: This study’s aim is to do an analysis on the effect of current ratio along with debt to equity ratio on
return on assets in the property and real estate sub-sector that is on Indonesia Stock Exchange’s (IDX) list during
2020-2023, with the moderating variable being company size.
Design/Methodology/Approach: Quantitative research methods were implemented for this study, with a causal
associative approach. Moderated Regression Analysis (MRA) was applied as the technique for data analysis, with
Eviews statistical software utilized.
Findings: The findings revealed that current ratio as well as debt to equity ratio impact return on assets
significantly. This means that an increased liquidity, along with the proportion of debt can reduce the efficiency
and profitability of the company. Company size strengthens the effect by functioning as a moderating variable.
Research limitations/implications: This research only focuses on the real estate and property sub-sector that is
on IDX’s list during 2020-2023. Therefore, this study’s results may not be generalizable to different sectors or
periods.
Practical implications: Investors and company management can use this study’s results as a basis for financial
decision-making, particularly in managing liquidity as well as leverage for increased profitability.
Originality/value: New insights are provided by this study into company size’s role as the moderating variable
for the relationship between leverage, liquidity, along with profitability, especially in the real estate and property
sector.
Paper type: Research paper
Keyword: CR, DER, ROA, Company Size
Received: November 13th
Revised: February 18th
Published: March 31th