The Effect of Financial Leverage and Operational Efficiency on Profitability at PT Astra Agro Lestari Tbk for the 2015-2025 Period

Abstract

This research is motivated by changes in the financial condition of PT Astra Agro Lestari Tbk from 2015 to 2025 and the differences in research results regarding the effect of financial leverage and operational efficiency on profitability. This study aims to analyze the effect of Debt to Asset Ratio (DAR) and Total Asset Turnover (TATO) on Return on Assets (ROA), both partially and simultaneously. The study uses a quantitative approach with multiple linear regression. The population and sample are the annual financial statements of PT Astra Agro Lestari Tbk for the period 2015 to 2025, with 11 observations. Data were analyzed through descriptive statistics, classical assumption tests, multiple linear regression, correlation coefficients, coefficients of determination, t-tests, and F-tests. The results show that DAR and TATO do not have a significant effect on ROA, either partially or simultaneously. In conclusion, these two variables are not yet the main factors in explaining changes in the company's ROA