The Effect of Asset Utilization Efficiency and Debt Level on Financial Performance at PT Gajah Tunggal Tbk for the 2011-2025 Period

Abstract

The financial performance of PT Gajah Tunggal Tbk fluctuated during the 2011-2025 period, especially in the efficiency of asset use, debt levels, and profitability. This study aims to analyze the effect of Total Asset Turnover (TATO) and Debt to Asset Ratio (DAR) on Return on Assets (ROA), both partially and simultaneously. The study uses a quantitative approach with an associative research type. The population and sample consist of the annual financial statements of PT Gajah Tunggal Tbk during 2011-2025, totaling 15 observations. Secondary data were collected through documentation and analyzed using SPSS 25 with descriptive statistics, classical assumption tests, multiple linear regression, correlation, coefficient of determination, t-test, and F-test. The results show that TATO has a positive but insignificant effect on ROA, while DAR has a negative and significant effect. Simultaneously, TATO and DAR have a significant effect on ROA. In conclusion, the debt level is a more determining factor in company profitability than the efficiency of individual asset use