The Impact of Financial Ratios on Stock Prices of Healthcare Sector Companies Listed on the Indonesia Stock Exchange (IDX) in the 2020-2023 Period

Abstract

In order to determine the impact that the Return On Asset (ROA), Current Ratio (CR), and Debt to Asset Ratio (DAR) have on the stock prices of health sector companies that are listed on the Indonesia Stock Exchange (IDX) between the years 2020 and 2023, this study will investigate the correlation between these three ratios. Secondary data are utilized in the research process. The approach of purposive sampling was utilized in order to identify ten businesses that met the requirements. The method of analysis that is utilized is called panel data regression, and it is realized through the utilization of the EViews 12 application. It has been determined that the fixed effect model (FEM) is the most effective model for panel data regression. In contrast to ROA, which did not have a significant relationship with stock price effects, the results showed that CR and DAR were marginally related to stock price influences (t test). It is also important to note that the three factors ROA, CR, and DAR all have an impact on stock prices simultaneously. With a value of 69.7%, the independent variable exerts a strong influence on the variable that is being studied. Due to the fact that these three factors are representative of the stock price of the company, the research was carried out with the intention of supporting investors in the process of decision-making and companies in the process of developing financial policies.