PENGARUH RETURN ON ASSETS, CURRENT RATIO, DEBT TO EQUITY RATIO DAN TOTAL ASSET TURNOVER TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN RETAIL DI BURSA EFEK INDONESIA TAHUN 2017-2021

Abstract

A retail company is a very fast-developing industry in Indonesia, due to the incline of society’s purchasing power. Therefore, the prospect can be beneficial to all parties. This research aimed to analyze the effect of ROA, CR, DER, TATO on the firm value of retail companies that were listed in Indonesia Stock Exchange during 2017-2021. Moreover, the data collection technique used purposive sampling, with 7 companies as the sample. The data were secondary, in form of companies’ financial statements. Furthermore, the data analysis technique used multiple liniear regression with SPSS 25. The result showed that ROA has a significantly positive effect on firm value. Likewise, CR had a significantly positive effect on firm value. In contrast, DER had a negative and significant effect on firm value. However, TATO had a positive but insignificant effect on firm value. In suggestion, the company had to focus on TATO in order to be able to gain a higher profit as well as to improve investors’ trust. On the contrary ROA, CR and DER had to be focused since they could become benchmarking of companies’ success.