The Effect of Asset Utilization Efficiency and Debt Structure on Profitability in Infrastructure Companies Listed on the Indonesia Stock Exchange for the 2019-2025 Period

Abstract

This research is motivated by fluctuations in the financial performance of infrastructure companies due to changes in asset utilization efficiency and funding structure. This study aims to analyze the effect of Total Asset Turnover and Debt to Asset Ratio on Return on Assets in infrastructure companies listed on the Indonesia Stock Exchange for the 2019–2025 period. The study uses a causal associative quantitative approach with secondary data in the form of annual financial reports. The study population consists of 29 companies, with 6 companies as samples selected through purposive sampling. Data were analyzed using EViews 12 through panel data regression, classical assumption tests, t-tests, F-tests, and coefficients of determination. The results show that Total Asset Turnover has no significant effect on Return on Assets, while Debt to Asset Ratio has a significant effect. In conclusion, debt structure is a more dominant factor in explaining profitability, while both variables simultaneously have a significant effect on profitability