Abstract:
The purpose of this research is to look at the effect between financial ratios and
stock returns in the Indonesian food and beverage industry. The research focuses
on determining the influence of various financial ratios on stock returns and
comprehending their relevance in projecting stock performance. A sample of food
and beverage firms listed on the Indonesian stock exchange is from 5 companies,
and financial data for a specified period is from 2015-2020. The study uses a
quantitative research method, analyzing the association between financial ratio and
stock returns using multiple regression analysis. As independent variables, several
essential financial factors and activity ratios are evaluated. The stock return, which
serves as a gauge of the firms' financial performance, is the dependent variable,
using EViews as result tools. The calculation shows that the independent variables
may concurrently justify 52.66%. Directors as well as shareholders may apply the
study findings to assess the firm's success.
