Total Asset Turnover Effect, Working Capital Turnover and Debt Ratio on Stock Price
Abstract. Stocks are investment instruments that are in great demand today. Invest in
shares with the expectation of obtaining higher returns from other investment objects so
that the company must be able to attract potential investors.
Total Asset Turnover shows the level of efficiency of the overall use of the company's
activities in generating a certain sales volume or a comparison between sales and total
assets owned by the company. Capital Turnover is one of the ratios to measure or assess the
effectiveness of the company's working capital during a certain period. If debt costs are
smaller than equity funds, by adding debt to the balance sheet, the company can generally
increase profitability, and increase its stock price.
This study was conducted to examine whether total asset turnover (TATO), working capital
turnover (NWCTO) and debt ratio (DER) to stock prices (Closing Price). Research
conducted on consumption sector companies listed on the Stock Exchange in 2007-2016.
This research method is carried out using samples from consumption sub-sector companies
in 2007-2016. The analysis technique used is multiple regression analysis, hypothesis
testing using t-statistics and f-statistics to test the regression coefficients simultaneously
and partially with a significance level of 5%.
From the results of the analysis shows that the variable total asset turnover (TATO),
working capital turnover (NWCTO) and debt ratio (DER) simultaneously have a significant
effect on stock prices
Keywords: Total asset turnover, Capital Turnover, Debt to Equity Ratio Against Stock