Total Asset Turnover Ratio, Airline Industry

The objective of the study is to investigate the major determinants of Return on Equity as a measure of profitability in the airline industry using empirical financial data of world airlines.
The study design is a quantitative study based on Panel secondary data collected by theInternational Civil Aviation Organization (ICAO). All the available valid data collected by the ICAO was used for the study. Nonlinear regression model and one way ANOVA are employed for
data analysis. The results of the study indicate that there is a positive and significant relationship between Return on Equity and Net Profit Margin, efficiency and leverage for the profitable airlines. The relationship between ROE and efficiency becomes negative when the airlines are not profitable. The relationship between ROE and leverage is also negative when the airlines are not profitable. There is a significant difference in ROE, profit margin, and leverage between the
profitable and non-profitable airlines while there is no significant  difference in efficiency. There exists significant difference between airlines registered in the different regions of the world in terms of efficiency and profit margin. Even though, Airlines should focus on net profit margin to meet their objective of maximizing stockholder equity, airlines with negative profit margin should take action to lower both their efficiency and leverage to minimize their losses. Airlines with positive profit margins should maintain or improve their efficiency and leverage to maximize profitability ensuring that the positive profit margin is maintained or improved. However,leverage should only be increased to the optimum level to avoid excessive risk and interest expense that depletes profit margin.

Penelitian ini bertujuan untuk menguji signifikansi pengaruh Current Ratio (CR), Price Earning Ratio (PER), Debt to Equity Ratio (DER), dan Total Assets Turnover (TATO) terhadap Return Saham Syariah, baik secara simultan maupun parsial pada perusahaan-perusahaan yang terdaftar di Index Saham Syariah Indonesia (ISSI) periode 2011-2015.
Populasi penelitian ini adalah perusahaan yang terdaftar di Index Saham Syariah Indonesia (ISSI) dari tahun 2011 hingga 2015. Jumlah sampel yang diambil dengan metode purposive sampling sebanyak 11 (sebelas) perusahaan. Model yang digunakan adalah model regresi data panel dengan menggunakan Eviews. Sedangkan, model analisis yang digunakan adalah Fixed Effect Model. Teknik analisis yang digunakan untuk uji hipotesis menggunakan Uji F, Uji R2, dan Uji t.
Hasil pembuktian hipotesis dan pembahasan dalam penelitian ini menunjukkan bahwa Current Ratio (CR), Price Earning Ratio (PER), Debt to Equity Ratio (DER), dan Total Assets Turnover (TATO) secara simultan berpengaruh signifikan terhadap Return Saham Syariah pada perusahaan-perusahaan yang terdaftar di Index Saham Syariah Indonesia (ISSI) periode 2011-2015 dengan nilai adjusted R2 sebesar 32.22 %. Sedangkan, pembuktian hipotesis secara parsial membuktikan bahwa Current Ratio (CR) secara parsial berpengaruh tidak signifikan terhadap Return Saham, Price Earning Ratio (PER) secara parsial berpengaruh tidak signifikan terhadap Return Saham, Debt to Equity Ratio (DER) secara parsial berpengaruh signifikan terhadap Return Saham, dan Total Assets Turnover (TATO) secara parsial berpengaruh signifikan terhadap Return Saham Syariah pada perusahaan-perusahaan yang terdaftar di Index Saham Syariah Indonesia (ISSI) periode 2011-2015.