Abstract

The current state of the tourism industry is being hit by the Covid pandemic which has caused the industry to collapse so that the performance of this industry must begin to tighten its operations in the face of the Covid-19 pandemic crisis. In assessing the financial performance of the hospitality business, investors learn a lot about the factors shown by the financial statements of each hospitality institution such as profitability, firm size and growth and its tangibility so that investors can determine how profitable this business is. The purpose of this study is to analyze influence of Return on Asset (ROA), growth, size firm, tangibility on Debt to Equity Ratio (DER) as well as influence between ROA and firm size against DER, sample research on 18 hospitality companies in Indonesia shows that ROA has no positive effect on DER, for growth has a negative effect on DER, firm size and tangibility has a positive effect on DER. From this result, investors are expected to obtain information and references in investing in the hospitality industry so that investors will benefit.

Keywords: Capital structure, Return on Asset (ROA), Growth, Size firm, Tangibility, DER