The impact of liquidity, solvency, profitability and activity on the value of food and beverage manufacturing companies listed on the Indonesia Stock Exchange for the 2019-2023 period

Abstract

A company is established with the aim of obtaining maximum profit and to increase the value of the company. The value of the company plays an important role in maximizing the welfare of shareholders. One of the factors that affect the value of the company is the financial ratio such as profitability, liquidity, solvency, and activity. This study was conducted with the aim of determining whether the current ratio, return on equity, debt on equity and asset turnover affect the price book value of food and beverage companies listed on the Indonesia Stock Exchange for 2019-2023 period. The data used in this study are secondary data obtained from company's annual financial report for the period of 2019-2023. The number of samples used in this study was 95 samples and selected using purposive sampling technique. The analysis method used is the multiple linear regression analysis method using SPSS 23. The results indicate that the current ratio, debt on equity and turn asset turnover did not affect the value of the company in the food and beverage industry sector listed on the Indonesia Stock Exchange for the period of 2019-2023. Meanwhile, return on equity showed a positive and significant influence on company value in the food and beverage industry sector listed on the Indonesia Stock Exchange for the 2019-2023 period.