Stock return content analysis based on ratio method: Case study on infrastructure, utilities and transportation companies listed on IDX in 2018-2020

Abstract

This research aims to analyze the effect of liquidity, leverage and profitability on the company's stock returns. Liquidity is proxied by current ratio, leverage is proxied by debt to equity ratio (DER), and profitability is proxied by return on assets (ROA). The research uses quantitative approach to explain the research purpose comprehensively through statistics scheme. The research population is all infrastructure, utility and transportation companies listed on Indonesian stock exchange in 2018-2020. This resesarch use purposive sampling technique and 27 companies as samples. The analysis method is classical assumption, multiple linier regression, hypothesis test, estimator model accuracy test and determination test. Several results show that liquidity, leverage, and profitability individually have significant effect on stock return. Based on the goodness of fit test shows liquidity with CR, leverage with DER and profitability with ROA simultaneously effect on stock return. The originality of this research is model initiation of the company's policy-making to increase stock returns in the future period through ratio analysis.

Factors That Determine Stock Returns Moderated by Stock Trading Volume in Manufacturing Companies Listed on the Indonesian Stock Exchange for the 2017-2021 Period

“…Return on asset (X1) has a coefficient value of 0,0269 and a probability of 0.0000 < 0.05, which indicates that it significantly and positively influences stock returns, according to the findings of partial hypothesis testing (Y). Earlier studies validate the findings of this study by Laulita & Yanni (2022), Rahmawati & Putra (2022). The ROA (Return on Assets) ratio can have an influence on the rate of return that investors see on their shares.…”

“…(Y). Prior studies validate the findings of this study by Rahmawati & Putra (2022) and Yuliarti & Diyani (2018). According to Febrioni (2018), the current ratio measures a company's capacity to use its current assets to pay its current liabilities.…”