THE EFFECT OF FINANCIAL RATIOS TOWARDS STOCK PRICE

Abstract

This research aims to analyze the effect of Financial Ratios towards Stock Price. Financial Ratios that are used in this research are Current Ratio (CR), Return on Equity (ROE), Net Profit Margin (NPM), Earnings per Share (EPS), and Debt Ratio (DR). The population used in this study is the food and beverage companies that have been listed on Indonesia Stock Exchange in 2013-2017, with a total sample of 13 companies. Then, the data used in this research are the secondary data since the data are obtained by looking at the financial reports that are published by the Indonesia Stock Exchange in 2013-2017. The researcher uses multiple regression analysis to test the hypothesis. The result shows that Current Ratio, Return on Equity, Net Profit Margin, Earnings Per Share, and Debt Ratio simultaneously have a significant effect towards the Stock Price. Partially, Current Ratio, Return on Equity and Debt Ratio have a significant negative effect towards stock price, while the Net Profit Margin and Earnings Per Share have a significant positive effect towards stock price.