ANALYSIS OF THE IMPACT OF PROFITABILITY RATIO AND SOLVABILITY RATIO OF THE FOOD & BEVERAGE INDUSTRY VALUE LISTED ON INDONESIA STOCK EXCHANGE 2014-2018

Abstract

In general, the purpose of every company, especially companies engaged in food and beverages listed on the stock market is to maximize the value generated by the company. A company can be said to have good value if the profit of the company is also good. The higher the value of a company, the greater the profits to be received by the owner of the company. The purpose of this study is to examine the impact of Return On Assets, Return On Equity and Debt to Equity Ratio in influencing company value. The technique used in sampling is purposive sampling from three companies that have been listed on the Indonesia Stock Exchange for the 2014-2018 period. The analysis used is Multiple Linear Regression in which the testing process using SPSS 23 software. The results of this study indicate that the three variables, namely Return On Asset, Return On Equity and Debt to Equity Ratio simultaneously have no significant effect on firm value. While partially these three variables have insignificant influence on the value of the company where in this case the Price Book Value variable.