To verify the selection of current ratio, inverse of debt ratio and inverse of debt-to-equity ratio as
output factors, the correlation coefficient study for current ratio, inverse of debt ratio and inverse
of debt-to-equity ratio against net income of the companies was carried out. Graph 3.2 showed
there is no pattern between current ratio and net income. The R-square value is –0.15. Graph 3.3
showed the inverse of debt ratio has no impact to net income of the companies. Graph 3.4
showed there is no trend for the inverse of debt-to-equity ratio against net income. Some
companies has low debt-to-equity ratio with low net income. Whereas, for some companies has
high debt-to equity ratio with low net income. AKN has 1.45 inverse of debt-to-equity ratio with
RM 25391000 net income. Globetronic has 79.86 inverse of debt-to-equity ratio with RM
29163703 net income. With this, we can conclude that there is no significant relationship between these input factors with companies’ net income. With the analysis in above, we can
conclude that the further analysis of this study is not necessary.