The Impact of Profitability, Liquidity, and Leverage on Firm Value: Evidence from the Consumer Non-Cyclicals Sector

Abstract

The purpose of this study is to examine the effect of profitability, liquidity, and leverage on firm value in the Customer Non-Cyclicals sector listed on the Indonesia Stock Exchange during the 2021–2025 period, as well as to reassess the inconsistencies found in previous research findings. The variables used in this study are profitability, measured by Return on Assets (ROA); liquidity, measured by Current Ratio (CR); leverage, measured by Debt to Equity Ratio (DER); and firm value, measured by Price to Book Value (PBV). The sample consists of Consumer Non-Cyclicals companies listed on the Indonesia Stock Exchange during the study period, selected using a purposive sampling technique. This study employs a quantitative approach, and the research method used is correlational analysis with the assistance of IBM SPSS 27 software. The results indicate that: profitability, liquidity, and leverage simultaneously have a significant effect on firm value; profitability has a positive and significant effect on firm value; liquidity has no significant effect on firm value; and leverage has a positive and significant effect on firm value. Abstract should not be more than 250 words, containing the aim of the study, research methods (including sampling methods and the procedure of collecting and analizing the data), and findings. The alignment is justified. The easier way to follow the instruction is copy your abstract and then paste it here. Don’t forget to save the template before. Use bookman old style 9 italic.cvvccc