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Journal : journal of multidisciplinary academic business studies

The effect of financial ratios on stock prices of consumer goods companies Putra, Agustian Nugraha; Zaharuddin , Zaharuddin; Iskandar, Rhoma
Journal of Multidisciplinary Academic Business Studies Vol. 3 No. 3 (2026): May
Publisher : Goodwood Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35912/jomabs.v3i3.4169

Abstract

Purpose: This study examines the effects of net profit margin, return on assets, and earnings per share on the stock prices of consumer goods companies listed on the Indonesia Stock Exchange during 2019–2024. This study also aims to address inconsistencies in previous findings and provide insights for investors and companies to make better financial and investment decisions. Research Methodology: This study employs a quantitative approach with secondary data sourced from the annual financial statements of 36 consumer goods companies listed on the Indonesia Stock Exchange (IDX) between 2019 and 2024. The analysis uses multiple linear regression to examine the effects of Net Profit Margin (NPM), Return on Assets (ROA), and earnings per share (EPS) on stock prices, with classical assumption tests ensuring data reliability before hypothesis testing. Results: The findings show that NPM and ROA have positive and significant effects on stock prices, while EPS has a significant negative effect. Conclusions: This study concludes that Net Profit Margin (NPM) and Return on Assets (ROA) positively influence stock prices, while earnings per share (EPS) negatively affects them, highlighting the complex relationship between profitability metrics and market performance. Limitations: The study's limitations include the exclusion of other potential influencing factors, such as liquidity, leverage, macroeconomic conditions, and market sentiment, which may also impact stock prices. Contributions: This study contributes to the understanding of how profitability indicators, particularly NPM and ROA, affect stock prices in the consumer goods sector, providing valuable insights for investors and financial analysts.
Co-Authors Adi Roganda Bakkara Adi Roganda Bakkara Albina, Vicky Pardise Alfiana, Ananda Rachma Ali Mulyanto Amalia, Ayu Nurul Andriani, Dini Anugrah Ari Saputra, Ari Arie Widiyastuti Arie Widyastuti Aryaningsih, Nur Asep Gunawan Ayu Nurul Amalia Az-Zahraadita Bahira Ramadina Bahtiar, Cefi Bernadinus Ketut Pradana Boma Jonaldy Tanjung Choiriyah Choiriyah Dania, Arika Darmeinis Darmeinis, Darmeinis Desilia Purnama Dewi Dini Andriani Dwi Ika Sugiarti E, Yon A. Elysabet Endang Mulyaningsih Fadila, Andin Eka Firdausi, Stabita Fitria Effendi Haerani, Bibah Halwati, Halwati Hamdi, Syukri Hayuni, Okta Ros Hendra Hendra Hendra Permadi Herdianti, Nina Hertina, Nabila Hertina Putri Iis Kurniawati Ika Sugiarti, Dwi Intan Purnamasari Iskandar, Leroy Holman Siahaan, Rhoma Jamaludin, Moh Josefa Da Costa Komarudin Bahar Krisna Rendi Awalludin Kurnia, Andita Lestari, Intan Puspita M. Ihwanudin Maya Purnama Siddhi Melinia, Bella Fitri Mulyaningsih, Endang Nadia Rista Niola Dinda Maharani Novi Rachmawati Novi Rachmawati Nugroho, Moh Taufan Nur Dwi Jayanto Nurkiyah, Endong Nursa’adah, Nursa’adah Putra, Agustian Nugraha Putri, Chientya Annisa Rahman Rachmah, Nur Rachmah Rahman P, Chientya Annisa Raja, Fitra Aulia Rista, Nadia Rizkiaisha, Dias Roy Firdaus Johanta Tarigan Roza Yenita Roza Yenita Rusmiati Rusmiati Rusmiati Rusmiati Santoso, Ayub Siahaan, Leroy H. Sobari, Ade Rezak Suarsih, Euis Sugeng Prayetno Sumardi . Suparman, Parman Supriyadi Supriyadi Supriyadi Supriyadi Surizari, Desy Sya'adah, Eha Wahyuni Syamsiar, Syamsiar Tambingon, Zefanya Imanuel Tesmanto, Joni Thiodora, Tania Alexandra Tumini Verliyana Wahyuningsih, Indriani Wardana, Heri Widiyastuti, Ari Widiyastuti, Arie Winna Sari Kusumaningtyas Yayang Wulandini Yenita Roza Yovita Tekliu, Maria Zaharuddin , Zaharuddin Zaharuddin Zaharuddin, Zaharuddin