Fundamental Analysis of Financial Ratios on Stock Prices (original) (raw)
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ARE FINANCIAL RATIOS ABLE TO MOVE STOCK PRICES
IJARW, 2024
The research aims to prove the effect of financial ratios on stock prices. This research is a type of explanatory research. Research was conducted at state-owned companies listed on the Indonesia Stock Exchange from 2015-2020. The data used is secondary data obtained from annual reports and financial reports. The sampling technique is to use purposive sampling. From a population of 20, a sample of 16 companies was obtained so that the total observations were 96. The analysis technique was to use multiple linear regression analysis with the help of SPSS software. The financial ratios used are profitability, leverage and liquidity. The profitability ratio is measured using return on assets (ROA). The leverage ratio is measured using the debt to assets ratio (DAR) and the liquidity ratio is measured using the current ratio (CR). The results obtained show that ROA has a positive effect on share prices. Meanwhile, DAR and CR have a negative effect on stock prices.
Debt Ratio, Debt to Equity Ratio, Net Profit Margin and Return Effects on Stock Price Assets
Proceedings of the International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies, 2020
Abstrak: The aims of this study are to determine the effect of debt ratio, debt to equity ratio, net profit margin and return on assets to stock prices. The results of the partial coefficient of debt ratio, debt to equity ratio, net profit margin, and return on assets on stock prices were 10.27%, -32.7%, 22.27%, and -41%, respectively. Meanwhile, the coefficient of determination of the debt ratio, debt to equity ratio, net profit margin and return on assets to stock prices was 60.3%. Simultaneously, the debt ratio, debt to equity ratio, net profit margin and return on assets have a significant effect on stock prices.
International Journal of Scientific Research in Science and Technology, 2020
This study examined the effect of current ratio and debt to asset ratio on net profit margin and stock prices of the sector basic industry and chemicals companies listed on the Indonesia Stock Exchange in the period 2015-2019. The object of research was the stock prices of companies in the Basic Industry and Chemicals sector, which have been published through the official website of the Indonesian capital market. It was used secondary data derived from the monthly statistics, including Current Ratio data, Net Profit Margin, Debt to Asset Ratio, and data on closing prices for the period 2015-2019. In analyzing data, it was used path analysis of secondary data obtained from the basic industry sector financial statements of 60 companies. The company's performance in this sector is considered quite good when seen from the movement of the index value in the last five years. The results show that direct current ratio had a positive and significant effect on the net profit margin, and the debt to equity ratio did not significantly influence the net profit margin. The current ratio has a positive and significant effect on stock prices, and the debt to equity ratio has a negative and not significant effect on stock prices. In contrast, the net profit margin has a significant effect on stock prices in the basic industry sector companies on the Indonesia Stock Exchange. Indirectly the current ratio has a positive and significant effect on stock prices. In contrast, the debt to asset ratio has a negative and not significant effect on the company's stock prices in the basic industry sector on the Indonesia Stock Exchange.
The Effect of Financial Ratios on the Stock Price Development
2017
This study examines the effect of the main microeconomic factors on the stock prices of select energy industry companies listed and traded on the Prague Stock Exchange and Warsaw Stock Exchange. The microeconomic factors are based on the financial situation in companies. The financial ratios (debt/equity ratio, liquidity ratio, financial leverage ratio, return on equity ratio and return on investment ratio) are gained from the financial statements. The existence of relationship between stock prices and financial ratios is tested with the Generalized Method of Moments. During the period 2006 - 2015 we revealed a positive impact of financial leverage ratio on stock prices in both countries and a negative effect of liquidity ratio on stock prices in both countries.
Relationship between financial ratios and stock value
International Journal of Health Sciences (IJHS), 2021
Financial ratios examines the items in the financial statements and converts them from Rial concept to comparable ratios. These ratios establish a meaningful relationship between the effective factors of financial statements and by establishing this relationship between the information in the financial reports, it gives the users the power of analysis. In this research, the relationship between the changes in financial ratios and the stock value of companies listed in the Tehran Stock Exchange is investigated. For this purpose, financial ratios were divided into liquidity ratios, profitability ratios, efficiency ratios, and debt ratios to measure liquidity ratios from current ratio and current ratio indicators, to measure profitability ratios from gross profit margin ratios, Return on sales, return on assets and return on equity were used. Also, in order to measure efficiency ratios, indicators of inventory turnover, accounts receivable turnover, and debt payment period were used, and finally, debt ratio and capital ratio were used to measure leverage ratios. The results showed that the results of the first hypothesis showed that there is a positive and significant relationship between the current ratio and the future ratio with stock value. In fact, the increase in current ratios and instantaneous ratio leads to an increase in the stock value. In this way, the increase in liquidity is a factor that can help improve the stock value. The results of the second hypothesis show that there is a positive and significant relationship between gross profit margin, return on sales, return on assets and return on equity with stock value. In fact, increasing the profitability indicators helps to increase the value of the company's shares. The results of the third hypothesis showed that there is a relationship between efficiency ratios and stock value. In fact, the increase in inventory turnover, the increase in the receivables collection period, and the decrease in the debt payment period increase the value of the company's shares. Finally, the results 814 of the fourth hypothesis showed that there is a relationship between leverage ratios and the company's stock value. In fact, an increase in the debt ratio leads to a decrease in the stock value and an increase in the capital ratio leads to an increase in the company's stock value.
Priviet Social Sciences Journal
During this pandemic there are many traders (people who invest in the short term or more actively monitor market prices), and retail investors (people who invest in the long term with small capital or passively monitor market prices and buy commodities). regularly either per day, week, or month with a small capital). This study uses the annual financial reports of three different infrastructure sector companies, namely, PT Jasa Marga Tbk, PT Waskita Karya (Persero) Tbk, and PT Bali Tower Indo Sentra Tbk and the data is taken from the Indonesia Stock Exchange on the website www.idx. co.id with the aim of obtaining empirical evidence that can be tested using the causality method. Data analysis in this study was carried out using multiple linear regression. This test begins with descriptive statistical testing, then continues with classical assumption testing and ends with hypothesis testing. The program (software) used for data processing in this study is SPSS version 22. The results ...
International Journal of Research in Commerce, Economics, and Management , 2022
This empirical investigation aims to examine the stock market’s dependence on financial book value of pharmaceutical companies in Dhaka Stock Exchange. All of data were collected from the website of Dhaka Stock Exchange. There are many pharmaceutical companies listed on Dhaka Stock Exchange some of which are subsidiaries. Major players in this industry with higher revenues and stock prices were selected as sample to investigate the fact. And not all financial ratios were put together in this study. After close examination and critical past reviews few of the ratios were selected to conduct the test. The result suggested that there is a strong correlation between financial ratios and stock prices. Five ratios were selected: Earnings per Share, Return on Assets, Return on Equity, Financial Leverage, and Price - Earnings Ratio. Only Return on Equity showed negative relations with stock where the four other variables showed positive relationships. The paper adds value to pre-existing literature concerning the alleged existence of a significant link between market price of stock and financial ratio. Additionally, the research discovers a powerful connection between investors of pharmaceutical stock and the company’s book value. The research is helpful for investors in this sector and also for pharmaceutical companies which are already listed on stock exchange or look forward to be being listed.
Ratio Analysis of Financial Performance of Companiesl Q45 Index Listed
Humanities & Social Sciences Reviews
Purpose of Study: This study was conducted with the aim to examine the effect of CR, DAR, DER, ROE, GPM, OPM, and NPM simultaneously to financial performance (ROA) and the effect of CR, DAR, DER, ROE, GPM, OPM, and NPM partially toward financial performance (ROA). Methodology: The sample of companies used in this study as many as 16 companies from 45 companies listed in the LQ45 Index period 2012-2016 with Purposive Sampling Technique. The independent variables used are Current Ratio (CR), Debt to Assets Ratio (DAR), Return on Equity (ROE), Gross Profit Margin (GPM), Operating Profit Margin (OPM), and Net Profit Margin (NPM) while the dependent variable is Return on Assets (ROA) as an indicator of Financial Performance. The analysis used in this research is the Multiple Regression Analysis. Results: The results show that CR, DAR, DER, ROE, GPM, OPM, and NPM have an effect toward ROA; CR, DAR, DER have no significant partial effect on ROA; and ROE, GPM, OPM, NPM have a partially sign...
Analysing the Impact of Financial Ratios on a Company’s Financial Performance
International Journal of Management Excellence
This study was conducted to analyze the relationship between several chosen financial ratios and the financial performance of companies. Chosen financial indicators were Current Ratio, EPS, Firm size, Leverage Ratio and BV/MV Ratio. Financial performance of the companies was assessed through growth of the net profit margin. Ten companies which were registered in Colombo Stock Exchange which were categorized as diversified holdings were chosen as the sample. Financial data from 2013-2018 were considered for this study. A panel data analysis was used to determine the relationships between the independent variables and the dependent variables with given consideration to time series analysis and cross sectional analysis. According to the results of the study only current ratio, leverage and the firm size had significant relationships with the financial performance of the company. Current ratio and firm size positively impacted the company’s profitability, where as leverage impacted nega...
International Journal of Science, Technology & Management
This research aims to determine the influences of Return on Asset, Return on Equity, Net Profit Margin, Debt Equity Ratio and Current Ratio toward stock price. The population in this research are all manufacturing companies listed in Indonesia Stock Exchange (IDX). The technique of determining the sample using purposive sampling method and sample acquired three companies from 35 companies from 2016 to 2018. This research contains six variables which are one dependent variable and five independent variables.