The Effect of Return on Assets, Current Ratio, Debt to Equity Ratio, and Company Growth on Company Value with Inflation as A Moderating Variable in Pharmaceutical Companies Listed on The Indonesia Stock Exchange in 2019-2023

Abstract

This study seeks to analyze the impact of Return on Assets (ROA), Current Ratio (CR), Debt to Equity Ratio (DER), and company growth on firm value, with inflation acting as a moderating variable, specifically within pharmaceutical companies listed on the Indonesia Stock Exchange from 2019 to 2023. The research method employed is a quantitative approach with secondary data in the form of company financial reports. The analysis technique uses panel data regression with a Random Effects Model (REM). The results show that ROA has a partially significant effect on firm value, while CR, DER, company growth, and inflation do not. Simultaneously, all independent variables do not affect firm value. Moreover, the coefficient of determination reveals that the independent variables' capacity to explain variations in firm value remains limited. This study highlights that profitability is the key factor driving an increase in firm value, while liquidity, leverage, growth, and inflation have not made significant contributions within the pharmaceutical sector during the study period.