Pengaruh Net Profit Margin dan Debt to Equity Ratio terhadap Return on Equity Perusahaan Otomotif

Abstract

Return on Equity (ROE) is an important indicator used to measure a company’s ability to generate profit from its equity. Manufacturing companies in the automotive industry subsector experienced fluctuations in financial performance during the 2021-2025 period. This condition indicates that ROE may be influenced by various financial factors, including Net Profit Margin (NPM), which reflect the ability to generate net profit from sales, and Debt to Equity Ratio (DER), ehich measures the proportion of debt to equity. This study aims to determine the effect of NPM on ROE, the effect of DER on ROE, and the simultaneous effect of NPM and DER on ROE in manufacturing companies in the automotive industry subsector listed on the Indonesia Stock Exchange during the 2021-2025 period. This research used a quantitative method with an associative approach. The data consisted of secondary data obtained from company financial statement. The sample was selected using purposive sampling, resulting in 55 observations. Data analysis was conducted using panel data regression with Eviews 12 throught t-test, F-test, and coefficient of determination analysis. The result showed that NPM had positive and significant effect on ROE, while DER had no significant effect on ROE. Simultaneously, NPM and DER had no significant effect on ROE. The Adjusted R-Squared value was 2,9672%. In conclusion, NPM significantly affects ROE, while DER does not significantly affect ROE. Simultaneously, both variables do not significantly affect ROE.