EFFECT OF THE RETURN ON INVESTMENT TOWARDS FIXED ASSETS INVESTMENT AT PT RAPIH METALINDO
Novan Hidayat Yuris(a), Fuad Maulana Kurnia (b), Tjutju Yuniarsih(c)

a,b)Master of Management Program, School of Postgraduate, Universitas Pendidikan Indonesia, Bandung 40154, Indonesia

c) Lecturer of Management Program, School of Postgraduate, Universitas Pendidikan Indonesia, Bandung 40154, Indonesia

Abstract

The purpose of this research is to know what the effect of the return on investment towards fixed assets investment at PT Rapih Metalindo Bandung Period 2008-2012.

This research used a method of descriptive with the approach of quantitative. The technique of collecting data done with the observation and study of literature. Sampel to be taken derived from balance sheet and report income statement period 2008-2012. The technique of using a test of normality data analysis of data, analysis of a correlation coefficient of Pearson product moment, a coefficient of determination, regression and the testing of hypotheses by using SPSS.

By virtue of analysis the data indicate return on invetment having the close correlation with the fixed assets investment as much 0,915 in the prologue and very strong and return on investment funds influential positive and significantly to the fixed assets investment as much 83,7% and the rest by 16,3% influenced by another factor that is not studied here, such as cash ratio, return on equity, total assets turn over, debt to assets ratio. The equation of regression is IAT = -0,142 + 6,102.ROI. Companies should increase the volume of sales in order to boots profits and as decision-making tool in investing, especially in fixed assets investment.

Keywords: Return On Investment, Fixed Assets Investment

Topic: Financial Management and Accounting