Examination of the Impact of Return on Assets and Net Profit Margin on Stock Prices

Anwar Ramli

doi:10.59890/ijma.v3i4.231

Authors

Anwar Ramli Universitas Negeri Makassar

DOI:

https://doi.org/10.59890/ijma.v3i4.231

Keywords:

Return on Assets, Net Profit Margin, Stock Price

Abstract

This study seeks to examine the impact of Return on Assets (ROA) and Net Profit Margin (NPM) on stock prices of food and beverage firms listed on the Indonesia Stock Exchange (IDX) from 2020 to 2024. This research employs a quantitative methodology utilizing multiple linear regression analysis. The utilized data comprises secondary data, specifically annual financial reports from food and beverage industries sourced from the official IDX website. The findings demonstrate that ROA exerts a positive and significant influence on stock prices, whereas NPM shows a positive although insignificant effect on stock prices. The data indicate that investors prioritize a company's efficiency in asset utilization for profit generation over its net profit margin.

References

To improve the accuracy and relevance of future research, these techniques could include longer time periods, panel data approaches, and consideration of sectoral conditions and economic cycles.

ACKNOWLEDGMENT

The author would like to express his gratitude to all parties who contributed directly or indirectly to the implementation of this research.

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