THE EFFECT OF LIQUIDITY AND SOLVENCY RATIOS ON THE FINANCIAL PERFORMANCE OF PHARMACEUTICAL COMPANIES ON THE INDONESIA STOCK EXCHANGE IN THE PERIOD 2021 – 2023

Abstract

THE EFFECT OF LIQUIDITY AND SOLVENCY RATIOS ON THE FINANCIAL PERFORMANCE OF PHARMACEUTICAL COMPANIES ON THE INDONESIA STOCK EXCHANGE IN THE PERIOD 2021 – 2023 Yosifina Br Pinem1 Purnama Yanti Purba2 Jhon Raphael Saragih3 1,2,3,4 Universitas Prima Idonesia 5Politeknik Kesejahteraan Sosial Bandung Co- author : purnamayantipurba@unprimdn.ac.id ABSTRACT In analyzing the financial condition of a company, it is very important to conduct a financial ratio analysis. Where the financial ratio has an important role in knowing how much influence the financial condition has on the future of the company for the better. This study was conducted to obtain empirical evidence regarding the effect of Liquidity and Solvency on the Financial Performance of pharmaceutical companies on the IDX. Data acquisition is generated from secondary data calculated every month on the financial reporting system processed on the IDX website. The sampling technique used is purposive sampling. The sample used in this study was 33 monthly reports from 11 companies for three years, namely the period 2021-2023. Data was collected by data collection and data management and analyzed using multiple linear regression analysis. The results of this study indicate that partially Liquidity has a positive and significant effect on Financial Performance and Solvency has a positive and significant effect on Financial Performance. In addition, simultaneously liquidity and solvency affect the financial performance of pharmaceuticals on the IDX in 2021-2023.