International Journal of Management and Business
Vol. 1 No. 4 (2024): October

The Effect of Profitability and Liquidity on The Stock Returns at PT. Kimia Farma Tbk

Gildan Nugraha Hidayat (Politeknik Piksi Ganesha)
Euis Hernawati (Politeknik Piksi Ganesha)



Article Info

Publish Date
31 Oct 2024

Abstract

This study seeks to examine the influence of profitability and liquidity on stock returns in PT. The study method utilized is a quantitative approach, specifically employing multiple linear regression analysis. To The stock return variable is calculated by determining the difference between the current year's stock price and the previous year's stock price, thereafter dividing this difference by the prior year's yearly price. The profitability variable is assessed using ROA, while the liquidity variable is evaluated using CR. This research was conducted on PT. Kimia Farma Tbk, utilizing the yearly financial reports from the IDX for the period 2019-2023. The study's findings demonstrated that neither profitability nor liquidity characteristics significantly influenced stock returns. And simultaneously the profitability and liquidity variables do not significantly affect stock returns, as their significance values are negligible. Consequently, variations in profitability and liquidity quality do not influence the company's stock return rate.

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Journal Info

Abbrev

ijmb

Publisher

Subject

Economics, Econometrics & Finance

Description

IRDH IJMB International Journal of Management and Business is a periodical scientific journal (four times a year) January, April, July, October. The main purpose of this journal is to disseminate scientific articles in the field of management, economics, accounting and business, which have a ...