eCo-Buss
Vol. 9 No. 1 (2026): eCo-Buss

The Effect of NPM, DAR, Current Ratio and ITO on Price Earning Ratio

Regina Indah Sagita (Universitas Indonesia Membangun)
Devyanthi Syarif (Universitas Indonesia Membangun)
Diah Febriyanti (Universitas Indonesia Membangun)



Article Info

Publish Date
10 Aug 2026

Abstract

This study examines the effects of net profit matgin, debt to asset ratioa, current ratio and inventory turnover on Indonesian Pharmaceuticals and Health Care Research price earning ratio between 2017 and 2025. The study looks at 63 financial statements from a specific consumer services industry using a quantitative method that is both descriptive and verifiable. The correlations between the variables were evaluated using multiple regression analysis, the determination coefficient examination, traditional assumption examinations, and coefficient of correlation trials for product moments, such as t-tests and F-tests for assessing hypotheses. The results of the incomplete test indicate that only NPM has an effect on PER, DAR, CR and ITO does not. Nevertheless, the simultaneous test's findings show that NPM, DAR, CR, and ITO all significantly affect PER when taken together. These results show that activity NPM, DAR, CR, and ITO mix are more important factors in determining PER in the Pharmaceuticals and Health Care Research than short-term. This highlights the importance of PER as measured by the capacity to boost profits, allowing the business to concentrate on operations and be appropriately overseen by the financial perspektive structure.

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Journal Info

Abbrev

eb

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Focus on the development of economic sciences especially ECommerce and Business, both scientific and practical review, so it is expected to become a scientific medium for the creation of integration between theoretical studies and practical studies for the development of economic science in various ...