THE EFFECT OF LIQUIDITY, SOLVABILITY, AND ACTIVITY ON COMPANY VALUE IN THE PROPERTY AND REAL ESTATE SECTOR 2022-2024

Abstract

Abstract

This study aims to analyze the effect of liquidity, solvency, and activity on firm value in property and real estate companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. Liquidity is proxied by the Current Ratio (CR), solvency by the Debt to Equity Ratio (DER), activity by the Total Asset Turnover (TATO), while firm value is proxied by the Price to Book Value (PBV). This research employs a quantitative approach using secondary data obtained from the published financial statements of companies listed on the Indonesia Stock Exchange. The sampling technique used was purposive sampling, resulting in 30 companies as research samples with a total of 90 observations during the 2022– 2024 period. Data analysis was conducted using multiple linear regression with the assistance of SPSS. The results indicate that liquidity has a positive and significant effect on firm value. In contrast, solvency and activity do not have a significant effect on firm value. Simultaneously, liquidity, solvency, and activity have a significant effect on firm value. These findings suggest that a company's ability to meet its short-term obligations is a more important consideration for investors in increasing firm value than its capital structure or the efficiency of its asset utilization.

Keywords: Activity, Current Ratio, Debt to Equity Ratio, Liquidity, Solvency, Total Asset Turnover, Frim Value, price to Book Valu