The Effect of Cash to Current Asset Ratio (CCAR) and Ebitda Interest Coverage Ratio (EICR) on Return on Capital Employed (ROCE) at PT Pertamina (PERSERO) for the 2014-2024 Period

Abstract

This study aims to determine and analyze the influence of the Cash to Current Assets Ratio (CCAR) and EBITDA Interest Coverage Ratio (EICR) on the Return on Capital Employed (ROCE) at PT Pertamina (Persero) during the 2014–2024 period. The study employs a quantitative method with an associative approach. Secondary data sourced from PT Pertamina (Persero)’s annual reports for the 2014–2024 period were used. A saturated sampling technique was applied, resulting in 11 years of observational data. Data collection was conducted through documentation and literature review. The collected data were analyzed using multiple linear regression with the aid of SPSS software, encompassing classical assumption tests, partial hypothesis testing (t-test), simultaneous hypothesis testing (F-test), and the coefficient of determination (R²). The results indicate that, partially, CCAR does not have a significant effect on ROCE, with a calculated t-value of -0.430 and a significance level of 0.677 (> 0.05). Similarly, EICR does not have a significant effect on ROCE, with a calculated t-value of -10.485 and a significance level of 0.000 (< 0.05). However, simultaneously, CCAR and EICR were found to have a significant effect on ROCE, with a calculated F-value of 48.860—exceeding the F-table value of 4.46—and a significance level of 0.000. The coefficient of determination (R²) of 0.905 indicates that 90.5% of the variation in PT Pertamina's ROCE can be explained by CCAR and EICR combined, while the remaining 9.5% is explained by factors outside the research model. Based on the research findings, it can be concluded that CCAR does not have a partial effect on ROCE, whereas EICR has a significant negative effect on ROCE at PT Pertamina (Persero) during the 2014–2024 period.