THE INFLUENCE OF RETURN ON EQUITY, DEBT TO EQUITY RATIO, AND CURRENT RATIO ON PRICE EARNING RATIO (STUDY ON AUTOMOTIVE & COMPONENT SUBSECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE PERIOD OF 2015-2019

Abstract

This study aimed to investigate the impact of Return on Equity, Debt to Equity Ratio, and Current Ratio on the Price Earning Ratio. The study focused on automotive companies listed on the Indonesia Stock Exchange from 2015 to 2019. Purposive sampling was employed, resulting in the selection of seven automotive companies over a five-year period. The analysis utilized multiple regression analysis. The findings indicated that Return on Equity had a positively significant effect on Price Earning Ratio, while Debt to Equity Ratio had a negatively significant impact. However, Current Ratio was found to have no influence on Price Earning Ratio.

Keywords: Price Earning Ratio (PER), Return on Equity (ROE), Debt to Equity Ratio (DER), Current Ratio (CR)