<![CDATA[Firm value is a key indicator reflecting how investors assess the performance and future prospects of a business entity. This study aims to analyze the effect of liquidity and leverage on firm value, considering the role of profitability as a mediating variable. The objects of this study were companies belonging to the tourism subsector and listed on the Indonesia Stock Exchange (IDX) during the period 2021 to 2024. The approach used was a quantitative approach with an associative research type. The data used were secondary data obtained from the official IDX website, www.idx.com. The sampling technique used a census method, where the entire population of tourism subsector companies that met the inclusion criteria during the observation period was used as a sample. From the selection results, 40 tourism subsector companies were obtained as the objects of the study. The results of the data analysis showed that the variables of liquidity, leverage, and profitability had a positive and significant influence on firm value. However, liquidity and leverage also found a negative effect on profitability. Of these two variables, only leverage showed a statistically significant negative effect on profitability. Furthermore, the results also revealed that profitability was unable to mediate the relationship between liquidity and leverage on firm value. These findings indicate that while profitability is a crucial aspect in increasing firm value, in the context of the tourism subsector, the direct influence of liquidity and leverage on firm value is more dominant than the indirect effect through profitability. Therefore, company management in this sector needs to pay closer attention to liquidity management strategies and capital structure to optimally increase firm value.]]>
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