The Influence of Return on Assets, Current Ratio, Debt to Equity, and Net Profit Margin on the Share Prices of Non-Cyclical Consumer Goods Companies Listed on the IDX for the 2021-2023 Period

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Research conducted by Indah Julita Sianipar, Brina Manalu, Saysha Dera, Jenny Zain, and Oky Syahputra from Universitas Prima Indonesia and Universitas Battuta in June 2026 analyzes internal financial factors that influence investor perceptions of a company's prospects.

Background and Issues

Share prices reflect a company's value, which is influenced by a complex interaction between internal and external factors. The consumer goods sector, including the tobacco industry, plays a crucial role in Indonesia's economic growth. This study aims to examine the extent to which ROA (profitability), CR (liquidity), DER (capital structure), and NPM (profit margin) determine investment decisions reflected in share price movements.

Research Methodology

This research uses a quantitative approach with a causal-comparative method. Secondary data in the form of annual financial reports (balance sheets and income statements) were collected from 38 consumer goods sector companies listed on the IDX during the 2021-2023 period via the official website www.idx.co.id, with a total of 64 observations after outlier detection. Data analysis was performed using multiple linear regression techniques.

Key Findings

• Influence of Return on Assets (ROA): ROA is proven to have a positive and significant partial influence on share prices. This indicates that a company's ability to manage assets to generate profit is a primary attraction for investors.

• Influence of Other Variables (CR, DER, NPM): Unlike ROA, the variables Current Ratio (CR), Debt to Equity Ratio (DER), and Net Profit Margin (NPM) do not have a significant partial influence on share prices.

• Simultaneous Influence: Collectively (simultaneously), ROA, CR, DER, and NPM have a significant influence on the share prices of consumer goods companies listed on the IDX.

Implications for Marketing and Investment Strategy

The authors provide several strategic recommendations:

1. Asset Performance Optimization: Companies are advised to continue improving the effectiveness of asset management (ROA) because it is empirically proven to influence investor confidence.

2. Investor Considerations: Investors are advised to prioritize profitability indicators such as ROA in making investment decisions.

3. External Factors: Given the limited influence of internal variables (R² is only 23.4%), investors are urged to consider factors outside of financial variables, such as economic conditions, interest rates, and broad industry performance.

4. Research Development: Future researchers are advised to add other variables that potentially influence share prices to make research more comprehensive.

Author Profile:

• Indah Julita Sianipar, Brina Manalu, Saysha Dera, Jenny Zain, and Oky Syahputra – PUI Finance, Faculty of Economics and Business, Universitas Prima Indonesia and Universitas Battuta, Indonesia.

Research Source: Sianipar, I. J., Manalu, B., Dera, S., Zain, J., & Syahputra, O. (2026). "The Influence of Return on Assets, Current Ratio, Debt to Equity, and Net Profit Margin on the Share Prices of Non-Cyclicals Consumer Goods Companies Listed on the Bei During the 2021-2023 Period". Indonesian Journal of Business Analytics (IJBA), 6(3), 405-422.

DOI: 

https://doi.org/10.55927/ijba.v6i3.16513