THE EFFECT OF PROFITABILITY, LEVERAGE AND LIQUIDITY ON COMPANY VALUE IN MANUFACTURING SECTOR LISTED ON THE BEI

Abstract

This study discusses the influence of profitability, leverage and liquidity on company value. Purposive sampling was used as a sample method. 72 manufacturing companies listed on the Indonesia Stock Exchange for the 2018–2022 period were the research subjects. The findings show how profitability, leverage, and liquidity all impact business value. Leverage, liquidity, and profitability all impact a company's value, but profitability has no impact. Profitability serves as a measure for the success of business management. Leverage is a measurement of how far debt finances an institution and the possibility of default on its debt obligations. Liquidity is seen from how easy it is for an asset or institutional security to be converted into cash which is considered a very liquid asset because it can be used at any time.