PENGARUH PROFITABILITAS, LIKUIDITAS DAN SOLVABILITAS TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN SUB SEKTOR FARMASI YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

This research aimed to examine and analyze the effect of profitability, liquidity, and solvability on firm value. Profitability was measured by Return On Assets (ROA), liquidity was measured by Current Ratio (CR), and solvability was measured by Debt to Equity Ratio (DER). Moreover, the research was quantitative. the data collection technique used purposive sampling. In line with that, there were 40 samples from 8 pharmaceutical companies listed on the Indonesia Stock Exchange during 2017-2021. Furthermore, the data analysis technique used multiple linear regression with SPSS 25.The result concluded that (1) profitability (ROA) had a positive effect on firm value (PBV). It meant, the better the companies’ ability in managing the assets was, the higher the companies’ profit would be, (2) liquidity (CR) did not affect firm value (PBV) as companies' ability in having cash based on related information, (3) solvability (DER) did not affect firm value (PBV) since the debt was used to spend operational activities and for companies’ development in making the investors not to consider DER as the reference.