Plantation companies' profitability boosted by asset turnover and equity leverage.
The study looked at how different financial ratios affect a company's return on assets in the plantation sector. They analyzed the current ratio, total asset turnover, debt to asset ratio, and debt to equity ratio. The researchers found that the current ratio doesn't impact return on assets, total asset turnover has a positive effect, debt to asset ratio has a negative effect, and debt to equity ratio has a positive effect on return on assets.