The Effect Of Financial Leverage On Profitability At Oracle Company

Eben Ezer Pakpahan;

Abstract

The purpose of this study is to determine whether financial leverage has a significant effect on the ability to earn profits. The results showed a very strong relationship between Financial leverage with Return On Investmentl, Financial leverage with Return On Invested Capital, Financial leverage with Return On Invested Capital. Determination of more than fifty percent is Determination of Financial leverage on Return On Assets, Financial leverage on Return On Invested Capital. Two-sided hypothesis using t-test which has a significant effect is: financial leverage has a significant effect on Return On Invested Capital, financial leverage has a significant effect on return on equity. Financial leverage that does not have a significant effect on net margins and Return On Assets. Financial leverage also has no significant effect on Return On Equity, financial leverage has no significant effect on Earning Per Share. To maximize research results, the number of samples should better increased both time and number of the company.