The Effect of Current Ratio, Debt to Equity Ratio, and Return on Equity on Price to Book Value (A Study of the Consumer Non-Cyclicals SectorListed on the Indonesia Stock Exchange for the 2019–2024 Period)

Abstract

This research examines whether Current Ratio (CR), Debt to Equity Ratio (DER), and Return on Equity (ROE) influence Price to Book Value (PBV) in Consumer Non-Cyclicals companies listed on the Indonesia Stock Exchange (IDX) over the 2019–2024 period. A quantitative causal approach was employed using 25 purposively selected companies. Panel data regression was conducted with EViews 12. The empirical results indicate that CR and ROE have positive and statistically significant relationships with PBV, while DER does not show a statistically significant relationship. These findings may serve as a consideration for corporate managers in making financial decisions and for investors in evaluating company fundamentals before investing.