Company Value Impact of Liquidity, Solvability and Profitability
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Abstract
This study aims to determine the effect of Current Ratio, Solvency (Debt to Equity Ratio), and Profitability (Net Profit Margin) on Firm Value (Price to Earning Ratio) in Textile and Garment Sub-Sector Manufacturing Companies Listed on the Sharia Index. Indonesia Stock Exchange for the period 2014-2018. Purposive Sampling was used as a sampling technique and 9 selected companies met the criteria to be the research sample. The results showed that Current Ratio had no positive and significant effect on Price to Earning Ratio, Debt to Equity Ratio had positive and significant effect on Price to Earning Ratio, Net Profit Margin had no positive and significant effect on Price to Earning Ratio. Simultaneously, Current Ratio, Debt to Equity Ratio, and Net Profit Margin have a significant effect on the company value of the Textile and Garment Sub-Sector Manufacturing companies listed on the Indonesia Stock Exchange Sharia Index for the period 2014-2018. The results showed that the solvency, liquidity and profitability variables in this study amounted to 26.65%, while the remaining 73.35% was explained by other variables outside the research model.
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