The impact of profitability on food and beverage companies listed in Indonesia stock exchange (2013-2017)
Cecilia Cecilia
Abstract
Cecilia Cecilia
Abstract
This research to analyze the impact of profitability to stock price on food and beverage companies listed in Indonesia stock exchange in 2013-2017 period. The operating profit margin (OPM), net profit margin (NPM), gross profit margin (GPM), return on assets (ROA) and return on equity (ROE) used as proxy for profitability ratio. The samples of this research are 11 companies. This research use ratios as variables, which are gross profit margin (GPM), operating profit margin (OPM), net profit margin (NPM), return on asset (ROA) and return on equity (ROE) as independent variables and stock price as dependent variable. Data analysis by using descriptive statistic and multiple linear regression to examine the hypothesis. The result shows that all variables used in research (NPM, OPM, GPM, ROA, and ROE have significant effect to stock price. So that the company should pay their attention to this ratio to increase the value of its company.
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This research to analyze the impact of profitability to stock price on food and beverage companies listed in Indonesia stock exchange in 2013-2017 period. The operating profit margin (OPM), net profit margin (NPM), gross profit margin (GPM), return on assets (ROA) and return on equity (ROE) used as proxy for profitability ratio. The samples of this research are 11 companies. This research use ratios as variables, which are gross profit margin (GPM), operating profit margin (OPM), net profit margin (NPM), return on asset (ROA) and return on equity (ROE) as independent variables and stock price as dependent variable. Data analysis by using descriptive statistic and multiple linear regression to examine the hypothesis. The result shows that all variables used in research (NPM, OPM, GPM, ROA, and ROE have significant effect to stock price. So that the company should pay their attention to this ratio to increase the value of its company.
Key concepts: Return on equity, Profit margin, Return on assets, Profitability index, Operating margin, Stock exchange, Gross margin, Business