One of the main concerns of the company is the effort to achieve the desired level of profit. That goal can be achieved through good asset management. Good asset management reflects that the company is able to control its financial performance efficiently and effectively. The purpose of this study is to determine the effect of asset management on financial performance. The approach taken to measure asset management is Fixed Asset Turn Over (FATO), while financial performance is measured by profitability using Return on Assets (ROA). This research model looks simple and uses only one independent variable. The selection of the best model is done after testing several other variables, and the more relevant variable to explain the diversity of ROA dependent variables is FATO. This study uses panel data analysis, which consists of six companies in the period 2013-2017. The analytical method used is Panel Data Regression Analysis. Based on the results of hypothesis testing, it is found that the independent variable FATO has a positive and significant effect on ROA. This means that asset management is needed to improve the profitability of the company.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.