THE INFLUENCE OF FINANCIAL RATIOS, AND MACROECONOMIC VARIABLES ON STOCK PRICES OF MANUFACTURING COMPANIES LISTED ON IDX DURING THE PANDEMIC COVID–19

Abstract

The stock price is a crucial factor that investors must consider, as it reflects a company's overall performance. This research aims to determine and analyze the

influence of the Current Ratio, Return on Equity, Inventory Turnover, Price-to- Book Value, Debt-to-Equity, Exchange Rate, and Interest Rate on the stock prices

of pharmaceutical manufacturing companies listed on the Indonesia Stock Exchange during the COVID-19 pandemic. This study employs multiple linear regression analysis as part of the quantitative methodology. The analysis in this research utilizes descriptive statistics, classical assumption tests, and hypothesis testing. This study found that Return on Equity, Price to Book Value, and Inventory Turnover significantly influenced stock prices. However, stock prices are not significantly influenced by the Current Ratio, Debt to Equity Ratio, Exchange Rate, and Interest Rate. The F test indicates that the variables Return on Equity, Current Ratio, Inventory Turnover, Price to Book Value, Debt to Equity, Exchange Rate,

and Interest Rate collectively influence the stock price ratio. Based on the R- squared value of the regression model of 0.340221, 34% of the variance in the

independent variables can explain the variation in the dependent variable, with the remaining 66% influenced by external factors. The Price to Book Value variable has the most influence on stock prices compared to the other variables, based on the results of the T-test.