The Effect of Liquidity and Profitability On Stock Prices of Pharmaceutical Companies listed On The IDX Period 2021-2024

Abstract

This study aims to analyze the effect of liquidity and profitability on the stock prices of pharmaceutical companies listed on the Indonesia Stock Exchange (IDX) for the 2021–2024 period. Liquidity is measured using the Current Ratio (CR), while profitability is measured by Return on Assets (ROA), and stock prices are proxied by Price to Book Value (PBV). This study uses quantitative methods with secondary data in the form of the financial statements of eight pharmaceutical companies. The results show that liquidity has a negative and significant effect on stock prices, indicating that excessively high levels of liquidity may be perceived by investors as inefficient in asset management. Conversely, profitability has a positive and significant effect on stock prices, indicating that a company's ability to generate profits from its assets can increase investor confidence and drive stock prices upwards.