Efektivitas Penggunaan Hutang (DER) Terhadap Profitabilitas (ROE): Evaluasi Kinerja Keuangan Sektor Ritel Khusus & Rumah Tangga Pasca-Pandemi (2020-2024)

Abstract

The Indonesian retail sector faces significant economic volatility throughout the 2020–2024 period, triggered by the impact of the Covid-19 pandemic and tightening monetary policy. These dynamics require management to reconsider the risks and benefits of using debt (financial leverage) in their capital structure. This study aims to examine the effect of Debt to Equity Ratio (DER) on Return on Equity (ROE) in companies in the Specialty Retail and Household Equipment sub-sector on the Indonesia Stock Exchange. Through a quantitative approach to audited financial statement data, the sample selection process using purposive sampling and outlier elimination yielded 29 valid observations. The results of the study show that debt usage has a positive and significant impact on corporate profitability, indicating that optimal debt management can increase shareholder returns during the post-pandemic recovery period. This finding confirms that debt is not merely a source of risk but can serve as a strategic instrument for improving financial performance when managed effectively. It also offers practical implications for retail company management and investors in making financing and investment decisions in the post-pandemic era.