ABSTRACT
The purpose of this research was to understand the effect of the return on investment (ROI) towards fixed assets investment at the Rapih Metalindo Corporation. This research used a descriptive method with a quantitative approach through observation and literature study as the data collection technique. The sample taken was derived from the balance sheet and report income statements from the 2008–2012 period. The technique used to test the normality data analysis, correlation coefficient analysis of Pearson product moment, a coefficient of determination, regression, and hypotheses was through SPSS. Based on the data analysis, the results indicated that there was a close correlation between the return on investment and the fixed assets investment—as much as 0.915 in the prologue. In addition, the return on investment funds positively and significantly influenced the fixed assets investment by 83.7%. However, the remaining 16.3% was influenced by other factors that were not examined in this research, such as cash ratio, return on equity, total assets turnover, and debt to assets ratio. Companies should increase the volume of sales in order to boost profits and as decision making tool in investing, especially in fixed assets investment. This is because the total assets which continue to increase in the current assets, are not comparable to the fixed assets and net income earned each year as inventory is accumulated by innovating products such as making safes, scissors, stairs, fences, and so on, to increase profits.
