Effect of Liquidity Ratio, Solvency Ratio, Activity Ratio, Profitability Ratio on Price Earning in Manufacturing Companies Listed on the Indonesia Stock Exchange for the period 2019 – 2022

Abstract

This study aims to determine the effect of liquidity ratio, solvency ratio, activity ratio,
and profitability ratio on price earning in manufacturing companies listed on the
Indonesia Stock Exchange. This research is a quantitative study using secondary data in
the form of financial reports of companies listed on the Indonesia Stock Exchange for
the period 2019-2022. Determination of the sample in this study using purposive
sampling. The analysis carried out is Descriptive Statistical Test, Classical Assumption
Test, Multiple Linear Regression Test (R2), and Determination Coefficient Test. The
independent variables used in this study are liquidity ratio (X1), solvency ratio (X2),
activity ratio (X3), and profitability ratio (X4). While the dependent variable is price
earning (Y). The results showed that there was no significant effect of the liquidity
ratio, solvency ratio, activity ratio, and profitability ratio on price earning in
manufacturing companies listed on the Indonesia Stock Exchange.