THE EFFECT OF RETURN ON ASSETS (ROA) AND TOTAL ASSET TURNOVER (TATO) ON EARNINGS GROWTH

Abstract

The purpose of this research is to examine the effect of Return on Asset (ROA) and Total Asset Turnover (TATO) on profit growth in telecommunication subsector companies listed on the Indonesia Sharia Stock Index (ISSI) during the year 2013-2022. The research used a quantitative approach with panel data regression analysis through a common effect model. The results showed that ROA and TATO, there is no significant effect either partially  or simultaneously on profit growthLow ROA indicates that the business is not managing its assets as efficiently as it may be in order to turn a profit. Similarly, non-optimal TATO indicates the low effectiveness of the company in managing assets to support sales activities. Simultaneously, the combination of the two does not contribute significantly to profit growth, which suggests that factors not included in this study's variables are more important.