The Influence of Financial Performance on Stock Prices in Non-Cyclical Consumer Sector Companies Listed on the Indonesia Stock Exchange during the Period 2019-2021

Abstract

This study aims to determine the impact of the Current Ratio (CR), Debt to Equity Ratio (DER), Return on Assets (ROA), and Price-to-Earnings Ratio (PER) on stock prices for non-cyclical consumer stocks listed on the Indonesia Stock Exchange (IDX) during the period of 2019-2022. Data will be collected from www.idx.co.id, with a sample size of 45 drawn from a population of 129 companies effectively listed on the IDX. This includes manufacturers in the non-cyclical consumer sector. The research methodology employs a quantitative approach, examining the financial statements of companies listed on the IDX according to the sector studied. This will involve the use of annual financial statements from 2019 to 2021. The research results show that for non-cyclical consumer goods companies listed on the IDX from 2019 to 2021, the Current Ratio has an insignificant effect on stock prices when examined in isolation. Similarly, the Debt-to-Equity Ratio has an insignificant effect on stock prices when examined independently. On the other hand, the Return on Assets has a significant effect on stock prices when viewed individually. Lastly, the combined effect of the Current Ratio, Debt to Equity Ratio, Return on Assets, and Price-to-Earnings Ratio on stock prices is found to be significant.