ANALISIS PENGARUH RASIO KEUANGAN TERHADAP HARGA SAHAM PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

The stock price is one of the indicators of the success of a company’s management. While financial ratios were mostly used by investors as the basis of decision-making in investment. The research aimed to find out the effect of financial ratios, i.e. liquidty (current ratio), profitability (return on assets), solvability (debt to equity ratio),cash flow (cash flow growth), and market ratio (earning per share) on stock return of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2019-2021. The research was descriptive-quantitative. Moreover, the population was all manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2019-2021. It consisted of 214 companies. Furthermore, the data collection technique used purposive sampling. The data were secondary, in the form of documentation of manufacturing companies’ financial statements during 20019-2021. Additionally, the data analysis technique used multiple linear regression. The result concluded that return on assets had a significant effect on stock return. On the other hand, the current ratio, debt to equity ratio, free cash flow, and earning per share did not affect stock return.