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The Effect of Profitability, Gross Profit Margin, and Total Asset Turnover on Company Value with Company Size as a Moderation Variable Melda Ek Pryanditha; Azmi Fitriati; Suryo Budi Santoso; Tiara Pandansari
Indonesian Journal of Business Analytics Vol. 6 No. 5 (2026): October 2026
Publisher : PT FORMOSA CENDEKIA GLOBAL

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55927/ijba.v6i5.17162

Abstract

This research endeavors to examine the impact of profitability, gross profit margin, and asset turnover rate on enterprise value, utilizing company size as a moderating variable within Consumer Non-Cyclicals sector enterprises registered on the Indonesia Stock Exchange throughout the 2020–2024 timeframe. The investigation employed a quantitative methodology utilizing secondary data, which was subjected to panel data regression analysis across 140 observational units derived from purposive sampling methodology, with statistical analysis conducted using STATA 17. The investigation's findings demonstrate that profitability exerts a positive influence, the Total Asset Turnover metric demonstrates a negative influence, whereas gross profit margin exhibits no statistically significant effect on enterprise value. Company size has demonstrated a moderating role in the relationship between profitability and enterprise value; however, it does not moderate the relationships between gross profit margin or total asset turnover and enterprise value. These conclusions contribute substantively to existing scholarship regarding corporate value determinants and offer significant implications for both managerial decision-making and investment strategy formulation.