Analysis Of Financial Ratio to Company Value

Abstract

This study was conducted to determine the effect of financial ratios on firm value in the consumer goods industry sector listed on the Indonesia Stock Exchange for the period 2015 – 2019. The independent variables used are Return on Total Assets, Current ratio, Debt To Total Assets, Total Assets Turnover and Price Earning Ratio with the dependent variable is Company Value (PBV). The sample selected in this study were 6 companies using purposive sampling method. The data analysis method used was panel data regression test using eviews9 which previously had descriptive statistical analysis and classical assumption tests. The results showed that ROA, CR, DAR, TATO, and PER have an effect on firm value. The independent variables, namely ROA, CR, DAR, TATO, and PER were able to explain the dependent variable, namely the firm value of 81%. However, the results of the partial study stated that only CR, TATO, and PER variables had a positive and significant effect on firm value.