THE EFFECT OF LIQUIDITY RATIO AND PROFITABILITY RATIO ON SHARE PRICES IN COMPANY SUB-SECTORS OF FARMASI IN THE STOCK EXCHANGE OF INDONESIA PERIOD 2015-2019

Abstract

ABSTRACT

From the activation of Ratio Likuidity and Ratio Profitability to the Stock Price is a very important factor and must be considered by investors who want to invest their shares in the company is said to be good or healthy can be seen at the level of profitability of the company and in any economic situation the company can last.

This study aims to determine the effect of Current Ratio and Gross Profit Margin on Share Prices, in the Farmasi Sub Sector Companies Listed on the Indonesian Stock Exchange For the 2015-2019 period.

The method used in this research is quantitative descriptive method. The population in this study is the Farmasi Sub Sector Companies Listed on the Indonesian Stock Exchange For the 2015-2019 perio. Sample selection using purposive sampling with sample criteria determined in the study produced a sample of 8 companies.

The results showed that the t-test results (partial) variable for the Current Ratio (X₁) against the Stock Prices (Y) using SPSS indicates t-test > t-table (0,672 < 2,027). The t-test results (partial) variable for the Gross Profit Margin (X₂) against the Stock Prices (Y) using SPSS indicates t-test < t-table (-2,853 > -2,024). Test result F (simultaneous) variable Current Ratio (X₁) and the Gross Profit Margin (X₂) against the Stock Prices (Y) using SPSS indicates F-test > F-table (4,165 > 3.24).

The conclusion of the results showed that a partial Current Ratio has no effect on Return On Stock Prices and the Gross Profit Margin has a negative effect on Stock Prices, while simultaneously the Current Ratio and Gross Profit Margin has a effect on Stock Prices.

Keywords: Current Ratio (CR), Gross Profit Margin (GPM), Share Prices