Liquidity and Profitability Effects on Healthcare Firm Value in Indonesia

Abstract

This study investigates the influence of liquidity and profitability on firm value within Indonesian healthcare companies listed on the Indonesia Stock Exchange during 2020-2022. Employing a quantitative methodology with purposive sampling, the research analyzes 16 healthcare companies selected from a population of 28 firms. Firm value is measured using Price to Book Value (PBV), liquidity through Current Ratio (CR), and profitability via Return on Assets (ROA). Multiple linear regression analysis utilizing SPSS reveals that liquidity demonstrates a significant negative effect on firm value, while profitability exhibits a significant positive impact. The adjusted R² of 0.289 indicates that liquidity and profitability explain 28.9% of firm value variation, with the remaining 71.1% attributed to factors beyond the research model's scope.