Quick Ratio and Debt-to-Equity Ratio Impact on Value: Food and Beverage Companies in IDX (2018-2022)

Abstract

In the current global environment, business competition is increasingly rapid, requiring organizations to be well equipped to compete domestically and internationally. One effective strategy to gain a competitive advantage is to strategically manage company assets to maximize their value, which can be achieved through careful financial performance assessment. There is a direct correlation between a company's financial ratios and its stock market price, where stronger financial performance leads to higher stock prices as an indication of the company's value. The aim of this research is to examine the effect of the quick ratio and debt to equity ratio on equity. The research sample consisted of nineteen food and beverage subsector manufacturing companies listed on the official website of the Indonesia Stock Exchange (www.idx.co.id). The final sample consists of 95 company years, obtained by multiplying the number of companies by the duration of the study, which covers five years. This research uses multiple linear regression analysis as the analysis technique. The research results show that DER has no impact on PBV, but QR has an effect on PBV even though it has a negative impact.