The Improvement of Corporate Profitability and Its Policies

between debt and equity is following the capabilities and objectives of the company. The suitability of the proportion of debt and equity is measured through Debt to Equity Ratio Abstract: With this exploration which direct to explore the effect of Current Ratio (CR), Debt to Equity Ratio (DER), and Total Asset Turnover (TATO) on Return on Equity (ROE) to Dividend Payout Ratio (DPR) and Corporate Social Responsibility (CSR) in the Basic Indus-trial and Chemical sector which were listed on Indonesia Stock Exchange (IDX) 2015-2019. The population in this exploration amounted to 78 companies and the sample used was 13 companies. The method used in this research is analysis of multiple linear regression and classical assumption test. The results showed that simultaneously CR, DER, TATO had sig effect on ROE. But, partially CR, DER had no significant effect on ROE, while TATO had sig effect on ROE. Partially ROE had sig effect to DPR and Corporate Social Responsibility. Theresult of coefficient determination with an Adjusted R 2 was 38.8% means the change of ROEhad 38.8% can be explained by CR, DER, and TATO meanwhile 61.2% can be explained bythe other variables outside from this study. For another analyst, it is suggested to attachanother variables as reference material for further research.

Profitability is the capability of a company to achieve its profit.The achievement of high profitability depends on the ability of the management of a company to manage and utilize funds as effectively and efficiently as possible.Profitability is used to calculate the company's capability to create profits as well as to decide the level of effectiveness of the corpora-tion in managing its financial resources.Companies can get high profits by maximizing the production of company goods that can be financed by themselves or through loan funds.Company fund loans must be managed properly so that they can generate company profits.To calculate the amount of effectiveness of a company in paying debt, the Current Ratio (CR) is the right measuring tool.The proportion of debt owed by the company must also be considered so that the ratio between debt and equity is following the capabilities and objectives of the company.The suitability of the proportion of debt and equity is measured through Debt to Equity Ratio Abstract: With this exploration which direct to explore the effect of Current Ratio (CR), Debt to Equity Ratio (DER), and Total Asset Turnover (TATO) on Return on Equity (ROE) to Dividend Payout Ratio (DPR) and Corporate Social Responsibility (CSR) in the Basic Industrial and Chemical sector which were listed on Indonesia Stock Exchange (IDX) 2015-2019.The population in this exploration amounted to 78 companies and the sample used was 13 companies.The method used in this research is analysis of multiple linear regression and classical assumption test.The results showed that simultaneously CR, DER, TATO had sig effect on ROE.But, partially CR, DER had no significant effect on ROE, while TATO had sig effect on ROE.Partially ROE had sig effect to DPR and Corporate Social Responsibility.The result of coefficient determination with an Adjusted R 2 was 38.8% means the change of ROEhad 38.8% can be explained by CR, DER, and TATO meanwhile 61.2% can be explained by the other variables outside from this study.For another analyst, it is suggested to attachanother variables as reference material for further research.DER.Besides, to increase company profits, one of them is through asset management.In managing assets, companies must pay attention to the efficient use of their assets in generating sales so they can increase company profits.Total Asset Turnover (TATO) is a ratio to calculate the ability of assets to generate sales.
Profits owned by the company must be allocated appropriately either in the form of Dividend Payout Ratio (DPR) or by implementing Corporate Social Responsibility (CSR).Management has the option of net income which can be given out to shareholders cash dividends called the DPR.CSR by companies, which is a concept in organizations or companies that have a form of responsibility for the community and the surrounding environment.CSR disclosure a motivation to increase public confidence in the achievement of efforts to improve the environment around the company.
According to Supardi et al. (2016), if CR is too high indicates too many idle current assets.And this is not great for the business's profitability because current assets will generate underneath returns than fixed assets.H1: CR affects ROE in Basic Industry and Chemical sector in IDX 2015-2019 According to Sartono (2015), the larger this ratio, the better the visible risk, and investors will demand a higher level of profit.A large ratio will indicate a low percentage of the shareholder to business assets.H2: DER affects ROE in Basic Industry and Chemical sector in IDX 2015-2019 In this study, the researcher used Basic Industry and Chemical sector which is recorded on Indonesia Stock Exchange (IDX) because the researcher found that there were several problems contained on the financial statements such as the increase in current assets but net profit after tax also increases, there is a decrease in total debt but also decrease in net profit after tax, and other problems such as an in-crease in net sales but a decrease in net profit after tax and represented the elements used in everyday life because most of all goods were products of daily life, this can be seen from the development of com-panies in the basic industry and chemical sectorswhich are much larger than other sectors.As for the benefits of our research results are so another reader can find out how are the effects of CR, DER, TATO on ROE and how are the effects of ROE on DPR and CSR in the Basic Industry and Chemical sector on the IDX 2015-2019.According to Sanjaya et al. (2015), TATO describes the level that has a maximum of all company assets in generating sales.The faster the turnover of the company's assets, the more income will be earned as well as profits.H3: TATO affects ROE in Basic Industry and Chemical sector in IDX 2015-2019 According to Pongrangga et al. (2015), Return on Equity calculation will change if the company's profit increases or decreases.The higher the profit generated, the higher the calculation results will be obtained, so that the measurement of profit in this study uses the ROE.H4: CR, DER, TATO affect ROE in Basic Industry and Chemical sector in IDX 2015-2019 According to Sulaeman (2018), the higher the return earned, the higher the business's capability to pay their dividends, and the company's stock price will be expanded.H5: ROE affects DPR in Basic Industry and Chemical sector in IDX 2015-2019 According to Kartini et al. (2019), the greater the company generates a profit, the higher the level of CSR disclosure, this is because the costs allocated for CSR disclosure are also increasing.H6: ROE affects CSR in Basic Industry and Chemical sector in IDX 2015-2019

METHOD
The analysis technique used in this research is quantitative method with a descriptive type of explanatory research.

Place and Time
Researchers researched Basic Industry and Chemical sector companies listed on the IDX 2015-2019 by using their official website access.The research time used was from June 2019 -November 2020.

Population and Sample
The

ROE = Net income / Total Capital Equity
According to Musthafa (2017), Dividend policy is an option whether profits that earned by the business will be allocated to shareholders as dividends or be hold on to the future investments.According to Syaifullah (2014), the formula for finding the DPR is: DPR = (Cash dividend paid / Net profit after tax) x 100% According to Animah et al. (2020), CSR is one of several corporate responsibilities to stakeholders.According to Mauludy and Faiqoh (2019), the formula for finding CSR is:

Descriptive Statistics
The samples in our research were 13 companies in the basic industry and chemical sector with a research period from 2015 to 2019, so the research data obtained was 65.The results can be seen from descriptive statistics (Table 2).
From Table 2 it can be seen that the min, max, mean, and std dev values of the variables CR, DER, TATO, DPR, and CSR are as follows: CR (X 1 ) owns 65 of the total sample, min value of 0.993 at PT. INAI in 2017 shows that every Rp.1 of the company's assets can generate a net profit of Rp. 0.993.Max value 21,705 at PT. DPNS in 2019 means that every Rp. 1 of the business's assets can generate a net profit of Rp. 21,705.With a mean value of 3.37698, the std dev value of this variable is 3.543471.DER (X 2 ) owns 65 of the total sample, min value of 0.108 at PT. SMBR in 2015 means having debt as much as 0.108 times the total capital (0.108: 1).The max value was 4,547 at PT. INAI in 2015 means that the company has a debt of 4,547 times the total capital (4,547: 1).With a mean value of 0.85823 and the std dev value of this variable is 0.950045.
In this study, researchers performed statistical analysis methods using SPSS software.
Hypothesis trial uses multiple linear regression analysis.The regression model used is:

Operational Definition of Research Variables
According to Murhadi (2013), CR is practiced to measure the company's capability to reach shortterm liabilities that are due within one year.CR can be calculated by the formula: CR = Current Assets / Current Liabilities According to Sitanggang (2014), DER is a ratio between total debt and total equity in a company which provides an overview of the comparison between total debt and the company's asset.According to Wahyudiono (2014), the formula for calculating DER is : DER = Total Liabilities / Own Assets TATO is a ratio that is used to calculate the turnover of all assets that in-hand by the company and to calculate how many sales were earned from each rupiah of assets.According to Kasmir (2018)

Classical Assumption The Test of Normality
The normality trial focus to test in case the regression model, confounding, or residual variables have a normal distribution.Figure 2 it can be concluded that the curve line is shaped like a bell, which means that the distribution of residual data is normal.In the graph above, it can be concluded that the dots are seen spreading near to the diagonal strip and following the rule of the diagonal strip.And it can be said that the data is normally distributed.

Statistical Analysis
The results of the Kolmogorov-Smirnov trial are another statistical used in this research.The following are the outcome of the Kolmogorov-Smirnov test: The outcome of the KS-test in Table 3 show a sig value of 0.932> 0.05, which means data is normally distributed.And can be used to perform other tests because it has a sig value> 0.05.

The Test of Multicolonierity
Multicolonierity test aims to determine even if there's a correlation between the independent variables in the regression model.There will be no correlation between the independent variables in a good regression model.In Table 4, the tolerance value of CR is 0.777 DER is 0.838 and TATO is 0.908 where the value is > 0.1.The VIF value of CR is 1.287 DER is 1.193 and TATO is 1.101 where the value is <10.
There's no multicollinearity between the independent variables in the regression model.In Table 5, the results of the Runs Test are 0.382> 0.05, so it can be concluded that there is no autocorrelation.

The Test of Autocorrelation
The regression that is free from autocorrelation is a good regression model.To find out whether or not autocorrelation exists in the study, it can be measured by the Runs Test, as follows:  The Test of Heteroscedasticity Heteroscedasticity does not occur in a good regression model.Heteroscedasticity testing in this study used a scatterplot chart test and also the Glejser test.From Figure 4, the dots spread both above and below the number 0 on the Y-axis so there is no heteroscedasticity in the regression model.

Results of Data Analysis Research Model
The research model used in this study is multiple linear regression analysis.The regression model used is as follows: In Table 6, the sig value of the 3 independent variables is > 0.05 so there's noheteroscedasticity problem.
In Table 7, it can be seen that the multiple linear equations in this study: ROE = 0.039-0.002CR-0.001DER+0.088TATO The multiple linear equations can be explained as follows: 1.A constant equal to stating that if the CR, DER, TATO are constant or have a value of 0, the ROE is 0.039 units.2. The coefficient value of the CR (X 1 ) is -0.002, indicating that an increase in the CR of 1 unit will be offset by a decrease in ROE of 0.002 units.
3. The coefficient value of the DER (X 2 ) is -0.001, indicating that an increase in DER of 1 unit will be offset by a decrease in ROE of 0.001 units.4. The coefficient value of TATO (X 3 ) is 0.088, indicating that an increase in TATO of 1 time will be offset by an increase in ROE of Rp. 0.088.

Coefficient of Determination
The coefficient of determination (R 2 ) aims to determine how much the model's ability to explain the dependent variable.The results of the determination coefficient test can be seen in the table below:    In Table 9, the R 2 value is 0.075 or 7.5%, which means that changes in the DPR variable of 7.5% can be explained by ROE while 92.5% is explained by other variables outside of this study.
In Table 10, the R 2 value is 0.085 or 8.5%, which means that the change in the CSR variable of 8.5% can be explained by ROE while 91.5% is explained by other variables outside of this study.

The Test of Simultaneous Hypothesis (F test)
F test is used to show whether all independent variables contained in the model have a simultaneous influence on the dependent variables.
Based on Table 11, it can be seen that the results of F count is 14.524, using table F, it is obtained df1 = k = 3 and df2 = 65 -3 -1 = 61 with a F  The t-table value for the 0.05 probability in degrees of freedom (n-k-1 = 65-3-1 = 61) is 1.99962.Thus the results of the t-test can be explained as follows: The t table value for the 0.05 probability in degrees of freedom (n-k-1 = 65-1-1 = 63) is 1.99834.Thus the results of the t-test can be explained as follows: is rejected H 1 is accepted, which means that ROE has sig effect toward DPR in basic and chemical industry sector companies recorded on IDX 2015-2019.
is rejected H 1 is accepted, which means that ROE has sig effect toward CSR in basic industrial and chemical sector companies recorded on IDX 2015-2019

Effect of CR on ROE
Formed on the results of the partial results, CR has no significant effect on ROE.The result is not in line with the results by Alpi (2018), which means CR is significantly influential partially against the ROE.However, the conclusion of our analysis is in line with the results of Supardi et al. (2016), if CR is too high indicates too many idle current assets.And this is not great for the business's profitability be- cause current assets will generate underneath returns than fixed assets.Although the conclusion of our research is in line with their results, there are certainly differences in our study.Such as, our information is certainly more recent and the years of research used are not the same.

Effect of DER on ROE
Formed on the results of the partial results, DER has no sig effect on ROE.The result is not in line with the results by Sartono (2015), the larger this ratio, the better the visible risk, and investors will demand a higher level of profit.A large ratio will indicate a low percentage of the shareholder to business assets.However, it is in line with research by Destari and Hendratno (2019), which states that DER doesn't have a significant effect on ROE.Although the conclusion in line with their results, there are certainly differences in our study.Such as our information is certainly more recent and the years of research used are not the same.

Effect of ROE on DPR
is not in line with the results of the analysis by Pratiwi et al. (2016), which means ROE doesn't have a significant effect on DPR.Although the conclusion of our research is the same as the opinion by Sulaeman (2018), there are certainly differences in our research too.Such as our information is certainly more recent and the years of research used are not the same.

Effect of ROE on CSR
Formed on the results of the partial results, ROE has a significant effect on DPR.The conclusion of this research are in line with the opinion by Sulaeman (2018), the higher the results of the partially results, ROE has sig effect on CSR.The results of the research are in line with the conclusion by Kartini et al. (2019), the greater the company makes a profit, the higher the level of CSR disclosure, this is because the costs allocated for CSR disclosure are also increasing.However, this is not in line with the results of the research by Animah et al. (2020), which states that ROE doesn't have a significant effect on CSR.Although the conclusion of our research is the same as research by Kartini et al. (2019), there are certainly differences in our study too.Such as the years of our research used are different and our information is certainly more recent than their research.

CONCLUSIONS
Simultaneous research results prove that CR, DER, and TATO have sig effect on ROE in the basic industrial and chemical sector that recorded on IDX 2015-2019.The results of this research prove that CR partially has no significant effect on ROE and also DER partially has no sig effect too toward ROE in the basic industrial and chemical sector that recorded on IDX 2015-2019.But another result of the research proves that TATO partially has a significant effect on ROE in the basic industrial and chemical sector that recorded on IDX 2015-2019 and also ROE partially has sig effect on the DPR in basic industrial and chemical sector that recorded on IDX 2015-2019.Research results partially prove that ROE partially has sig effect on CSR too in basic industrial and chemical sector that re-Formed on the results of the partial results, TATO has a significant effect on ROE.The conclusions are in line with the opinion of Sanjaya et al. (2015), TATO describes the level of effectiveness in maximizing all company assets in generating sales.The faster the turnover of the company's assets, the income earned will also increase as well as profits.And in line with the results of research by Jessica et al. (2019), which said that TATO partially has a significant effect on ROE.Al-though the results of our study are in line with their results, there are certainly differences in our study too.Such as the years of our research used are different and our information is certainly more recent than their research.
Formed on the results of the partial results, ROE has a significant effect toward DPR.The conclusion of this research in line with Sulaeman (2018), the higher the return earned, the higher the company's ability to pay dividends, and the company's stock price will increase.However, this corded on IDX 2015-2019.From the conclusions of our analysis, it can be said that there's a useful company policy so that the profits generated will be distributed to dividends which are commonly known as DPR, or will be distributed to the social environment which is commonly known as CSR.

RECOMMENDATIONS
For companies in the basic industry and chemical sectors, it is recommended that they optimize their social responsibility (CSR).For another analyst, it's suggested to attach another variable as reference material for further research.

Figure
Figure 1.Conceptual Framework , the indicator of looking for TATO is: TATO = Sales / Total Assets ROE is what percentage of net profit is obtained when calculated from the shareholder.The bigger the greater.According to Harahap (2015), the indicator for calculating ROE is: The Improvement of Corporate Profitability and Its Policies Kurniawati, Desi T. and Yaakop, Azizul Y. 2021.Tokopedia E-Store during Covid-19 Pandemic The Influence of Transformational Leadership Style on Work Engagement Remuneration Dimediation and TATO (X 3 ) owns 65 of the total sample, min value of 0.307 at PT. SMBR in 2017 showed that rotating assets took 99.07709 days (365/12 / 0.307) to create sales.Max value 2.013 at PT. PT.CPIN in 2017 took 15,11011 days (365/12 / 2,013) to create sales.With a mean value of 0.76958, the std dev of the variable is 0.370847.ROE (Z) owns 65 of the total sample, min value of 0.002 at PT. Lion Metal Works Tbk in 2019 shows that every Rp. 1 of the company's total capital can only issue a company profit of 0.002.The max value is 0.235 at PT. CPIN in 2018 indicates that the level of efficiency of the company maximizes its assets, which is every Rp. 1 generating a profit of 0.235.With a mean value of 0.09922, the std dev is 0.054432.DPR (Y 1 ) owns 65 of the total sample, min value of 0.00031 at PT. IMPC in 2015 means that the company only pays dividends of 0.031% of the profit generated that year.The max value is 5.580 at PT. LION in 2019 which means that the company pays dividends of 558%.With a mean value of 0.56111, the std dev is 0.772763 CSR (Y 2 ) owns 65 of the total sample, min value of 0.022 at PT. CPIN in 2015.Max value of 0.220

Figure
Figure 3. P-P Plot Normality Test

Table 5 . Autocorrelation Test Figure 4. Scatterplot Graph Analysis
Source: research results by using SPSS(2019)

Table 7 . Multiple Linear Regression Analysis Test Model R R Square Adjusted R Square Std. Error of the Estimate
Source: research results by usingSPSS (2019)

Table 8 . Coefficient Determination I
In Table8, the Adjusted R 2 value is 0.388 or 38.8% which means that the variation in the Return on Equity variable of 38.8% can be explained by the variables CR, DER, and TATO.while 61,2% explained by other variables outside of this study.

Table 9 . Coefficient Determination II Standardized Coefficients Unstandardized Coefficients B Std. Error Beta The Improvement of Corporate Profitability and Its Policies Kurniawati, Desi T. and Yaakop, Azizul Y. 2021. Tokopedia E-Store during Covid-19 Pandemic The Influence of Transformational Leadership Style on Work Engagement Remuneration Dimediation and The Test of Partial Hypothesis (t-test)
Partial Hypothesis testing can be used to show how far the influence of one independent variable on the dependent variable.

Table 10 . Coefficient Determination III
table value of 2.76, the result is F count > F table (14.524>2.76).The significance value of 0.000<0.05H 0 is rejected H 1 is accepted, which means that simultaneously CR, DER, TATO have a significant effect on ROE in basic industrial and chemical sector companies listed on IDX 2015-2019 Source: research results by usingSPSS (2019)