Company Value Impact of Liquidity, Solvability and Profitability | Zendy

Et. al. Dede Hertina | Zendy

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Company Value Impact of Liquidity, Solvability and Profitability

Author(s) -

Et. al. Dede Hertina

Publication year - 2021

Publication title -

türk bilgisayar ve matematik eğitimi dergisi

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.218

H-Index - 3

ISSN - 1309-4653

DOI - 10.17762/turcomat.v12i4.563

Subject(s) - current ratio , debt to equity ratio , profit margin , stock exchange , profitability index , business , financial ratio , market liquidity , solvency ratio , return on equity , debt ratio , equity ratio , net interest margin , debt to capital ratio , price–earnings ratio , nonprobability sampling , monetary economics , solvency , economics , financial system , return on assets , debt , finance , earnings per share , population , demography , sociology

This study aims to determine the effect of Current Ratio, Solvency (Debt to Equity Ratio), and Profitability (Net Profit Margin) on Firm Value (Price to Earning Ratio) in Textile and Garment Sub-Sector Manufacturing Companies Listed on the Sharia Index. Indonesia Stock Exchange for the period 2014-2018. Purposive Sampling was used as a sampling technique and 9 selected companies met the criteria to be the research sample. The results showed that Current Ratio had no positive and significant effect on Price to Earning Ratio, Debt to Equity Ratio had positive and significant effect on Price to Earning Ratio, Net Profit Margin had no positive and significant effect on Price to Earning Ratio. Simultaneously, Current Ratio, Debt to Equity Ratio, and Net Profit Margin have a significant effect on the company value of the Textile and Garment Sub-Sector Manufacturing companies listed on the Indonesia Stock Exchange Sharia Index for the period 2014-2018. The results showed that the solvency, liquidity and profitability variables in this study amounted to 26.65%, while the remaining 73.35% was explained by other variables outside the research model.

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