Abstract :
Debt financing have to taken carefully by company to result a good return,
because return reflects company performance from investing activities.
Measurement of company performance can be seen at return on investment and
return on equity ratios, while leverage ratio can be used to measured debt which
get by company.
The main purposes of this research are to know that variable leverage
partially influence return on in investment and return on equity.
The object of this research is PT Hero Supermarket Tbk. This research
using secondary data during 2001 to 2007 quarterly, so total observations are
twenty eight observations. This research using simple regression linier. T-test is
used to test the hypothesis and coefficient of determination is used to know the
strength of influenced between the variables.
The result indicated that both (return on investment and return on equity)
are not influenced by leverage at level five.
Key words : leverage, return on investment, and return on equity