EFFECT OF DEBT TO EQUITY RATIO (DER), TOTAL ASSET TURNOVER (TATO), INFLATION AND INTEREST RATE (SBI) ON PROFITABILITY IN CONSTRUCTION COMPANY (PERSERO) ON THE INDONESIA STOCK EXCHANGE

This study aims to determine the Debt To Equity Ratio (DER), Total Asset Turnover (TATO), Inflation and Interest Rates (SBI) on Profitability in construction companies (Persero) on the Indonesia Stock Exchange. This study uses secondary data in the form of construction company (Persero) financial reports for 2015-2021 accessed on the company's official website and www.bi.go.id. The population in this study were 22 companies and the sample used was 15 companies selected using the Purposive Sampling method. The results showed that DER had a positive but not significant effect on ROA, TATO had a positive and significant effect on ROA, INF had a positive but not significant effect on ROA, and SBI had a positive and insignificant effect on ROA.


INTRODUCTION
Financial performance is one of the most important things in a business world related to the company, both internally and externally. Financial performance is a benchmark for each company to assess the company's ability to achieve company profits and the maximum performance that has been achieved by the company. Financial performance as a form of analysis is carried out to see how far the company has implemented the rules of financial implementation properly and correctly. Assessment of the company's financial performance generally uses ratio analysis, using ratio analysis will be able to explain an overview of the company's financial position, especially if comparative ratio figures are used as standards (Santia, 2018). Profitability is the ability of a company to generate profits in a certain period. Profit is usually one of the company's performance assessments, where if the profit generated is high then the company's performance is good and vice versa. Apart from being an indicator of the company's ability to fulfill obligations for capital providers, company profit is also an element in creating company value that shows the company's prospects in the future (Prabowo et al, 2019). Profitability is a ratio that describes a company's ability to earn profits through all existing capabilities and sources such as cash sales activities, capital, number of employees, number of branches and so on. The ratio that describes a company's ability to generate profits is also called the Operating Ratio (Agustin, 2020).
In this study the ratio used is ROA. Return on Assets is one of the right ratios to measure a company's financial performance. According to Widodo (2018) Return on Assets (ROA) is a ratio that focuses on a company's ability to obtain earings in its operations (Orniati, 2019). Factors that affect profitability, especially Return on Assets, include DER, TATO Inflation and SBI interest rates according to his research Darminto (2020), Tinambunan (2020), Salainti (2019) and Robbani (2020). Based on the phenomena that occur on Return on Assets caused by problems and then assisted by previous researchers or the Research gap described above, the authors are interested in conducting an empirical study entitled "Effect of Debt to Equity Ratio (DER), Total Assets Turnover (TATO), Inflation and Interest Rates (SBI) on Profitability in Construction Companies on the Indonesia Stock Exchange".

LITERATURE REVIEW
Financial performance is one of the most important things in a business world related to companies, both internally and externally (Sukma, 2019). Financial performance is a benchmark for each company to assess the company's ability to achieve company profits and maximum performance that has been achieved by the company (Wahono, 2018). Profitability is the ability of a company to generate profits in a certain period. Profit is usually one of the company's performance assessments, where if the profit generated is high then the company's performance is good and vice versa. Apart from being an indicator of the company's ability to fulfill obligations for capital providers, company profit is also an element in creating company value that shows the company's prospects in the future (Prabowo et al, 2019). Return on Assets is a profitability ratio that shows the percentage of profits earned by a company in relation to the total resources or the average number of assets. ROA is a ratio that measures how efficient a company is in managing its assets to generate profits over a period. ROA can help management and investors to see how well a company is able to convert its investment in assets into profit or profit (Prabowo & Sutanto, 2019). DER is the ratio between total debt and total equity in a company which gives a comparison between company equity (Darminto & Fuadati, n d, 2020). According to Ginting (2018) the Debt to Equity Ratio is a ratio that shows the ability of the company's own capital to fulfill all of its obligations. The data used to calculate the value of the Debt to Equity Ratio is obtained from the company's financial statements in the form of a balance sheet to see how much total debt and total equity the equity has in the company (Salaanti, 2019). One of the ratios included in the activity ratio is Total Asset Turnover (TATO). According to Salinti (2019) Total Asset Turnover is a ratio that shows the level of efficiency in using all of the company's assets in producing a certain sales volume. Total Asset Turnover is a ratio to measure the comparison between fixed assets owned to sales. This ratio is useful for evaluating how much a company's ability to utilize its fixed assets efficiently in order to increase revenue. Total Asset Turnover, which measures how many times the company's total assets generate sales (Nur'aidawati, 2018).
According to Iswanto (2017) Inflation is a process of increasing general prices continuously. While the opposite of inflation is deflation, which is a continuous decrease in prices, as a result, people's purchasing power increases, so that in the initial stage goods become scarce, but in the next stage the number of goods will increase due to the decreasing purchasing power of the people. Inflation is caused by increased demand and increased production costs (Wahono, 2018). According to Ilmi (2017) Interest rates are the amount of money paid in return for using debt. High interest rates will lead to a high volume of public savings. The higher the interest offered by the bank, the higher the enthusiasm of the people to save. Thus investors will prefer to invest their money in savings or deposits rather than stocks. The conceptual framework is a model that explains or explains how a theory relates to the important factors that are known in a particular problem. Based on Figure 2.1 above, it shows a hypothesis or temporary conjecture, namely the Debt to Equity Ratio (DER) has a negative effect on ROA, Total Asset Turnover (TATO) has a positive effect on ROA, inflation has a negative effect on ROA, and SBI interest rates have a negative effect on ROA.

RESEARCH METHODS Data
The object examined in this study is the Debt to Equity Ratio. Total Asset Turnover, inflation, interest rates (SBI) and Return on Assets while the location of this research is located in a construction company listed on the Indonesia Stock Exchange with data obtained from the company's official website and www.bi.go.id. The population used in this study were construction sector companies listed on the Indonesia Stock Exchange for the 2015-2021 period with a total population of 22 companies, the samples obtained for this study were 15 companies. By using purposive sampling technique. The data collection technique used in this study is the documentation method

Analysis Method
To perform data analysis in this study researchers used quantitative analysis. The data obtained in the form of numbers will then be analyzed using statistical tools. The analysis in this study uses panel data regression analysis. There are several methods commonly used to estimate regression models with panel data. There are three models in this data panel namely, Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). Based on the equation above, it can be seen that the constant value in this study is -0.1242. This means that ROA, if DER, TATO, INF and SBI are 0 (constant), then the ROA value remains at -0.1242. The DER regression coefficient value is 0.0342, this indicates a positive (unidirectional) relationship. This means that every 1% increase causes ROA to increase by 0.0342%. Furthermore, the value of the TATO regression coefficient is 0.1295, indicating a positive relationship (unidirectional). This means that every 1% increase will cause ROA to increase by 0.1295%. Furthermore, the value of the INF regression coefficient is equal to 0.2237 which indicates a positive relationship (unidirectional). This means that every 1% increase will cause ROA to increase by 0.2237%.