JOURNAL OF APPLIED INFORMATICS AND COMPUTING
Vol. 9 No. 5 (2025): October 2025

Python-Based Linear Regression Modeling of Liquidity and Profitability Ratios as Determinants of Firm Value in Commercial Banks in Indonesia

Febriyanti, Zahra (Unknown)
Karismariyanti, Magdalena (Unknown)
Sukmawati, Fitri (Unknown)



Article Info

Publish Date
19 Oct 2025

Abstract

The decline in Indonesian banking stocks in early 2024 was caused by foreign capital outflows. A decrease in foreign investment can reduce banks' ability to maintain their capital structure and intensify liquidity pressures. The primary measure for assessing company value is firm value, which can attract investors and indicate potential returns for shareholders. This study aims to analyze the influence of liquidity and profitability on firm value. The sample consists of 55 firm-year observations from the banking sector listed on the Indonesia Stock Exchange (IDX) ranging from 2019 to 2023, obtained using a purposive sampling technique. Data processed with Python using Multiple Linear Regression shows that liquidity has a significant and positive effect on firm value. Similarly, profitability also has a positive and significant effect on firm value. The results of the F-test indicate that liquidity and profitability have a simultaneous influence on firm value. The model demonstrates an outstanding prediction rate, with an R-squared value of 99.8%. The model These findings contribute valuable insights for stakeholders and investors, suggesting that by assessing the strength of liquidity and profitability in financial statements, they can enhance their profit potential.

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Journal Info

Abbrev

JAIC

Publisher

Subject

Computer Science & IT

Description

Journal of Applied Informatics and Computing (JAIC) Volume 2, Nomor 1, Juli 2018. Berisi tulisan yang diangkat dari hasil penelitian di bidang Teknologi Informatika dan Komputer Terapan dengan e-ISSN: 2548-9828. Terdapat 3 artikel yang telah ditelaah secara substansial oleh tim editorial dan ...