ANALYSIS OF THE EFFECT OF LEVERAGE RATIO AND PROFITABILITY RATIO ON STOCK PRICES IN FOOD AND BEVERAGE INDUSTRY SUB-SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (BEI) FOR THE PERIOD 2019 - 2023

Authors

  • Eka Sutisna Universitas Islam Jakarta

Abstract

This study aims to determine, assess and analyze the effect of Leverage Ratio and Profitability Ratio on Stock Price in food and beverage industry sub-sector companies listed on the Indonesia Stock Exchange. The dependent variable of this study is the Stock Price as measured by the Annual Closing Stock Price. Meanwhile, the independent variables of this study are the Leverage Ratio as measured using the Debt to Equity Ratio (DER) and the Profitability Ratio as measured using Return on Equity (ROE). The analysis method used is a descriptive method with a quantitative approach, which is research that aims to analyze data in the form of numbers from financial reports and then provide certain conclusions that can provide an assessment of the problem. The samples used in this study were 6 Food and Beverage Companies listed on the Indonesia Stock Exchange for the period 2019 - 2023. The data analysis techniques used in this study are Descriptive Statistical Analysis Test, Classical Assumption Test, Multiple Linear Regression Analysis Test, and Hypothesis Test using the SPSS version 29 program to determine the influence and relationship of each variable. Based on the results of the analysis and discussion, it can be concluded that simultaneously the Leverage Ratio and Profitability Ratio have a positive and significant effect on Stock Prices. While partially, the Leverage Ratio has a positive but insignificant effect on Stock Prices and the Profitability Ratio has a negative and significant effect on Stock Prices.Keywords: Leverage Ratio, Profitability Ratio, Stock Price.

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Published

2025-02-26

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Articles