Influence Current Ratio and Total Assets Turnover on Stock Returns with Return on Equity as Intervening on the Indonesian Stock Exchange

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Abstract: This research aims to determine the influence of the Current Ratio and Total Assets Turnover on Stock Returns with Return on Equity as an Intervening. This research was carried out using the Purposive Sampling method to obtain a representative sample according to the specified criteria. The number of samples obtained was 12 companies for the 2011-2021 period. The method used to analyze the data is multiple linear regression analysis. Based on the research results, the Current Ratio has a significant positive effect on stock returns, Total Assets Turnover has no significant effect on stock returns and Return on Equity has a significant positive effect on stock returns. Current Ratio has a significant negative effect on Return on Equity, while Total Assets Turnover has no significant effect on Return on Equity. Return on Equity can mediate the relationship between Current Ratio and stock returns, while Total Assets Turnover and stock returns cannot be mediated by Return on Equity.

Financial Engineering, E-ISSN: 2945-1140, Volume 3, 2025, Art. #5

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Muhammad Farhan Atthahiry, Yuliani Yuliani, Shelfi Malinda, Fida Muthia, "Influence Current Ratio and Total Assets Turnover on Stock Returns with Return on Equity as Intervening on the Indonesian Stock Exchange," WSEAS Transactions on Financial Engineering, vol. 3, pp. 43-50, 2025, DOI:
Muhammad Farhan Atthahiry, Yuliani Yuliani, Shelfi Malinda, Fida Muthia. Influence Current Ratio and Total Assets Turnover on Stock Returns with Return on Equity as Intervening on the Indonesian Stock Exchange. Financial Engineering. 2025;3:43-50.
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