Vol. 10, No. 1, June 2020, pp. 26-36
ISSN: 2720-9830. 26
Journal homepage: https://jurnal.darmaagung.ac.id/index.php/socio/about
Analysis Of The Effect Of Current Ratio And Net Profit Margin On Stock Prices In Food And Beverage Companies Listed On The Indonesia
Stock Exchange
Asazatulo Giawa Universitas Darma Agung
Article Info ABSTRACT
Article history:
Received April 2020 Revised May 2020 Accepted June 2020
This study aims to test the Effect of Current Ratio and Net profit Margin on Stock Prices listed on the Indonesia Stock Exchange 2018-2020. In this study there are 2 independent variables, namely Current Ratio and Net Profit Margin and 1 dependent variable, namely Stock Price. The sampling method carried out in this study is the purposive sampling method. The population in this study was 26 companies and then that met purposive sampling of 10 companies. The type of regression model used in this study was multiple regression, then to test the research in multiple regression using Statistical Product and Service Solution (SPSS) version 22.
Keywords:
Current Ratio Net Profit Margin Stock Price
This is an open access article under the CC BY-SA license.
Corresponding Author:
Asazatulo Giawa
Department of Management, Universitas Darma Agung Email: [email protected]
INTRODUCTION
The occurrence of the global crisis in 2008 caused a sluggishness in the sale and purchase of shares, the crisis that occurred initially in the United States has spread to all sectors, from banking, the real sector to the capital market. The capital market is a means for investors to enable diversification of investments.
The Indonesia Stock Exchange (IDX) or Indonesian stock exchange (IDX) is one of the capital market suggestions in Indonesia. In general, the expectation of investors to invest in stocks is to obtain capital gains or dividends. Capital gain is the difference in the stock price at the time of selling and buying shares. Dividends are profits distributed to shareholders.
Based on the description above, the researcher is interested in conducting research by taking the title "The Effect of Current Ratio and Net Profit Margin on Stock Prices of Food and Beverage Companies Listed on the Indonesia Stock Exchange".
Formulation of the problem
Based on the background that has been stated previously, the formulation of the problem in this study is as follows:
Does the Current Ratio (CR) partially affect the Stock Price?
Does Net Profit Margin (NPM) partially affect the Stock Price?
Do Current Ratio (CR) and Net Profit Margin (NPM) have a simultaneous effect on stock prices?
Research purposes
The objectives to be achieved in this research are:
To find out whether the Current Ratio (CR) has an effect on stock prices in manufacturing companies in the food and beverage sector listed on the IDX. To find out whether Net Profit Margin (NPM) has an effect on stock prices in manufacturing companies in the food and beverage sector listed on the IDX. To find out whether
the Current Ratio (CR) and Net Profit Margin (NPM) to Stock Prices in food and beverage manufacturing companies listed on the IDX.
METHOD
Research Location and Time
The location of this research was carried out on food and beverage companies listed on the Indonesian stock exchange for the 2018-2020 period. This research was conducted from May to October 2021.
Population and Sample
The population in this study consisted of all food and beverage industry companies listed on the Indonesia Stock Exchange (IDX) during the 2018 - 2020 period, which were 26 companies.
From table 1, it can be seen that of the 26 food and beverage manufacturing companies listed on the Indonesian stock exchange, there are 10 samples that meet the predetermined characteristics.
Operational Definition and Measurement of Variables
Jurnal Ilmiah Socio Secretum, Vol. 10, No. 1, June 2020: 26-36 Types and Sources of Research Data
The type of research that will be used in this study is a quantitative type with associative research methods.
Associative research method is a form of research using at least two variables that are connected.
Hypothesis testing is done by using statistical calculations used to test the variable (X) against the variable (Y).
This study uses secondary data sourced from the official website of the Indonesia Stock Exchange on the website www.idx.co.id. The data used is the 2017-2019 company financial statements from selected companies as samples published by the Indonesian stock exchange.
Method of collecting data Field Research
Method of Library (Library Research) Documentation Method
Methods of Data Analysis and Hypothesis Testing Descriptive statistics
Descriptive statistics is a method or methods used to summarize and record data in the form of tables, graphs or summaries, numerical data. The data in this study were analyzed with descriptive statistics which were used to provide an overview of the distribution of the frequency of research variables, maximum, minimum, average, and standard deviation values.
Multiple Linear Regression Statistics
The form of multiple regression in this study discusses multiple regression with 2 independent variables, namely:
Information : Y = Share Price a = Constant Price
b1= First Regression Coefficient b2= Second Regression Coefficient x1= Current Ratio
x2= Net Profit Margin e= Error Rate
Normality test
According to Sarjono and Julianita (2011: 53) the Normality Test aims to determine whether or not a data distribution is normal. According to Ghozali (2013: 154) there are two ways to detect data that is normally distributed or not, namely by graphical analysis and statistical tests.
Heteroscedasticity Test
According to Russiadi (2016: 85) The heteroscedasticity test is used to see whether there is an inequality of variance from the residuals of one observation to another.
Multicollinearity Test
According to Ghozali (2011:112) multicollinearity test aims to test whether the regression model of the regression model found a correlation between independent variables. A good regression model should not have a correlation between variables.
Autocorrelation Test
The criteria for the presence or absence of autocorrelation can be seen in Table 2.
Hypothesis testing
Partial Significance Test (t test)
After obtaining the tcount value, then the tcount value is compared with the ttable value with the formula df=n-k-3 at a significant level (α) = 5%. The basis for making decisions on this t-test is:
H_o is accepted and H_a is rejected if the value of t_hitung< ttable or if the value of Sig>0.05 H_o is rejected and H_a is accepted if the value of t_count> ttable or if the value of Sig<0.05.
Simultaneous Significant Test (F test)
In this study, the authors use the F-test to see whether the Current ratio and Net Profit Margin simultaneously have an effect on stock prices with the following conditions:
If F_count > F_table or if sig<0.05, then H_o is rejected and H_a is accepted If F_count < F_table or if sig>0.05, then H_o is accepted and H_a is rejected Coefficient of Determination Test (R^2)
According to Sugiyono (2014: 257) to find the F test using the following formula:
Information :
KD= Coefficient of Determination R2= Correlation Coefficient
The correlation coefficient is said to be strong if the R value is above 0.5, or close to 1.
RESULTS AND DISCUSSION Description of Research Object
The Indonesia Stock Exchange or abbreviated BEI is a stock exchange in Indonesia that facilitates trading of shares, fixed income, derivative instruments, mutual funds, stocks and bonds based on Sharia.
In this study, the objects used are consumer goods industrial companies listed on the Indonesia Stock Exchange (IDX) for the period 2016 to 2019. During that period, the total population obtained was 26 companies and 10 companies were selected as samples in this study.
The data used in this study is secondary data, namely the financial statements of food and beverage companies on the IDX for the period 2018 - 2020. The number of companies that are the research sample are 10 companies, namely as follows:
Analysis of Current Ratio (X1)
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When viewed as a whole throughout 2018, issuers with the highest CR ratio occurred in DLTA issuers of 719.83%. This means that the company's ability to meet short-term obligations is still low.
In 2019, BUDI issuers stood at 3.69%, FOOD issuers 1.13%, CEKA issuers 479.97%, CLEO issuers 117.47%, DLTA issuers 805.05%, GOOD issuers 1.53%, ICBP issuers 2.54%, INDF issuers 1.27%, MYOR issuers 344.00% and ULTJ issuers 444.41%, overall in 2019 the highest CR ratio was still in DLTA issuers at 805.05%.
In 2020, BUDI issuers stood at 3.44%, FOOD issuers 0.75%, CEKA issuers 466.27%, CLEO issuers 172.28%, DLTA issuers 749.85%, GOOD issuers 1.75%, ICBP issuers 2.26%, INDF issuers 1.37%, MYOR issuers 369.00%, and ULTJ issuers 240.34%, overall in 2019 the highest CR ratio was still in DLTA issuers at 749.85%.
Net Profit Margin Analysis (X2)
Based on Table 3, it can be seen that in 2018 BUDI issuers achieved an NPM ratio of 0.07%, FOOD issuers 0.75%, CEKA issuers 2.55%, CLEO issuers 7.61%, DLTA issuers 37.86%, GOOD issuers 8.05%, ICBP issuers 11.90%, INDF issuers 12.45%, MYOR issuers 7.00% and ULTJ issuers 12.83%.
In 2020 BUDI issuers achieved an NPM ratio of 0.09%, FOOD issuers 2.28%, CEKA issuers 6.90%, CLEO issuers 12.05%, DLTA issuers 38.43%, GOOD issuers 7.97%, issuers ICBP 11.90%, INDF issuers 12.83%, MYOR issuers 8.00% and ULTJ issuers 16.55%.
Share Price (Y)
Based on Table 4 above, it can be seen that in 2018 the shares of BUDI issuers amounted to Rp. 96, FOOD issuer of RP. 117, CEKA issuers amounting to Rp. 1110, DLTA issuers amounting to Rp. 5500, GOOD issuers Rp. 1850, issuer of ICBP RP. 10600, issuer INDF RP. 7450, issuer MYOR Rp. 2640 and issuer ULTJ RP.
1205. Overall, the highest share price in 2018 was in ICBP issuers of Rp. 10600.
In 2020 the shares of BUDI issuers amounted to Rp. 99, the issuer of FOOD is RP. 119, CEKA issuers amounting to Rp. 1785, DLTA issuers amounting to Rp. 4400, GOOD issuers Rp. 1270, issuer of ICBP RP.
9570, issuer INDF RP. 6850, issuer MYOR Rp. 2710 and issuer ULTJ RP. 1600. Overall, the highest share price in 2020 was still with ICBP issuers of Rp. 9570
Descriptive Statistics of Research Variables
The results of descriptive statistical analysis research can be seen in Table 4.5 below:
From Table 5 above, it can be seen that the average Current Ratio of the 30 samples used is 210.53067% with a standard deviation of 259.435939. The average Net Profit Margin of the 30 samples used is 10.14733% with a standard deviation of 10.785013. The average share price of the 30 samples used is Rp. 3044.06667 with a standard deviation of 3346.815635.
Classic Assumption Test Results Normality Test Results
Figure 1 Normality Test Results (Probability Plot) Source: SPSS Version 22 Processing Results, data processed by the author (2021)
From the probability plot graph, it can be seen in Figure 4.1 below that the points spread around the diagonal
Jurnal Ilmiah Socio Secretum, Vol. 10, No. 1, June 2020: 26-36
regression model is feasible to use to predict the dependent variable, namely stock prices, based on input from the independent variables, namely Current Ratio (CR) and Net Profit Margin (NPM).
Figure 2 Normality Test Results
Source: SPSS Version 22 Processing Results, data processed by the author (2021)
From Figure 2 the histogram shows that the regression model has met the assumptions previously stated, so the data in this regression model tends to be normal.
Multicollinearity Test
From Table 2 Multicollinearity Test above, it can be seen that the two independent variables Current Ratio and Net Profit Margin do not occur multicollinearity where the tolerance value is > 0.10 and the VIF value is < 10.
Heteroscedasticity Test Results
Figure 3 Heteroscedasticity Test Results (Scatterplot) Source: SPSS Version 22 Processing Results, data processed by the author(2021)
From Figure 3 the scatterplot shows the points spread randomly. Does not form a clear or regular pattern, spreads well above and below the number 0 on the Y axis, thus there is no heteroscedasticity in the regression model.
Autocorrelation Test Results
The Durbin-Watson test can be seen in the following table:
In Table 6 above, it is known that the results of the autocorrelation test using Durbin-Watson are as follows, namely 1.732, so the results of the above calculation show that the DW value lies between the values of du and (4-du) of 1.5666 and 2.4334 (du < DW < 4- du) it can be concluded that there is no autocorrelation in the regression model used in this study.
Multiple Regression Analysis
Based on table 7 above, the results of the multiple linear regression equation are as follows:
Y= 1,865,915 - 5,943 X1 + 239,410 X2 + e Information :
Y= Share Price X1 = Current Ratio X2= Net Profit Margin e= Error term
Hypothesis testing Partial Test (t)
Based on table 8 it can be concluded that:
H1 : Effect of Current Ratio on Stock Price
The value of t table is calculated from t = Alpha 5% df (n)-k = df (n) is the number of data and (k) is the number of independent variables, meaning 30 – 2 = 28, so t table is 1.701. The test results obtained that the value of tcount = -2.431 is smaller than ttable = 1.701 and the significant value of the Current Ratio variable is 0.022 which is smaller than 0.05. This shows that the current ratio (CR) has a negative and significant effect on stock prices. So it can be concluded that H1 is rejected, H0 is accepted.
H2 : Net Profit Margin (NPM) to Share Price.
The value of t table is calculated from t = Alpha 5% df (n)-k = df (n) is the data and (k) is the number of independent variables, meaning 40 – 2 = 38, so ttable is = 1.701. The test results obtained that t count = 4.071 is greater than t table = 1.701 and the significant value of the Net Profit Margin variable is 0.000 which is smaller than 0.05. This shows that the Net Profit Margin has a positive and significant effect on the Stock Price.
So it can be concluded that H2 is accepted and H0 is rejected.
Test (Simultaneous) F
Jurnal Ilmiah Socio Secretum, Vol. 10, No. 1, June 2020: 26-36
Based on Table 9, it can be seen that in this study the calculated F value is 8.289 > F table is 3.34 so that H2 is accepted, H1 is rejected, and it means that simultaneously Current Ratio (CR) and Net Profit Margin (NPM) to Stock Prices.
Coefficient of Determination Test
Based on Table 10, it can be seen that the coefficient of determination (seen from R Square) is 0.380. The value of R Square is 0.380, this means that 38.0% of the variance in the stock price value is determined by the independent variables, namely the Current Ratio (CR) and Net Profit Margin (NPM), while the rest is influenced by other variables not examined in this study such as ROA, ROE and other profitability.
Result Interpretation
The Effect of Current Ratio on Stock Prices
Based on the results of the research, the value of tcount = -2.431 is smaller than ttable = 1.701 and the significant value of the Current Ratio variable is 0.022, which is smaller than 0.05. This shows that the current ratio (CR) has a negative and significant effect on stock prices.
This research is supported by research conducted by Yoga Dwi Kurnia (2017) and Ria Andriyani (2012) which states that the current ratio has a negative effect on increasing stock prices in manufacturing companies listed on the IDX. Riris Novitas Sari (2017) stated that the results of his research on the current ratio to stock prices in manufacturing companies showed no or negative effect.
Based on the research sample, it can be seen that CEKA issuers within a period of three years the value of current debt has always increased, namely (2018) 158,256,000,000,000 in (2019) 222,441,000,000,000 and in 2020 still continues to increase by 271,641,000,000,000 with increasing value. A company's current debt will increase the value of the current ratio, resulting in a decrease in stock prices, following the decline in stock prices for CEKA issuers, in (2018) 511.30% with a share price of Rp. 1,110, year (2019) 479.97% with a share price of Rp. 1,670, and in (2020) 466.27% with a share price of Rp. 1785. If it is seen from the current ratio value, which is quite large, the increase in stock prices is also not too significant, so it can be concluded that the current ratio has no effect on stock prices.
Furthermore, for DLTA issuers within a period of three years, total current assets in (2018) were 90,191,000,000,000 and total current liabilities exceeded total assets of 192,300,000,000,000, and the current ratio value was 719.83% and the share price was Rp. 5500, in (2019) total current assets of 85,235,000,000,000 with a total value of current debt of 160,587,000,000,000, current ratio value of 805.05% and share price of Rp. 6800, in (2020) total assets were 79.117,000,000,000 and the total value of current debt was 147,208,000,000,000, the value of the current ratio was 749.85%, the share price in 2020 decreased to Rp.
4400. The total value of current debt that exceeds total assets will affect the value of the current ratio as a result, stock prices will decrease or not increase at all.
Effect of Net Profit Margin (NPM) on Stock Prices
This study found that the Net Profit Margin partially on the stock price, which shows that the results of tcount are 4,071 > ttable 1,701 with a significance of 0.000 less than 0.05. This shows that the Net Profit Margin has a positive and significant effect on stock prices, meaning that the higher the net profit margin ratio, the better the performance of a company and that means the company will be better at generating high profits, so that it can attract more investors' attention. to buy shares or to invest. This causes the stock price to increase as well.
The results of this study are consistent with research conducted by Ria Andriyani (2012), Aditya (2012), Edwin (2016), Roni (2019) with the results of net profit margin having a positive and significant effect on stock prices.
Based on the research sample, it can be seen that INDF issuers in (2018) have a total net profit of 9,143,000,000,000 with a total sales value of 73,394,000,000,000 so that the NPM ratio is 12.45%, where the NPM ratio above 10% is good enough to show company performance, with a share price of Rp. 7,450. In
(2019) the total net profit value was 9,831,000,000,000, an increase from the previous year, and total sales were 76,593,000,000,000 so that the NPM ratio was 12.83% with a share price of Rp. 5,979. In (2020) a total net profit of 12,889,100,000,000 and total sales of 81,731,500,000,000. In 2020 there was an increase in total sales and total net profit from the previous year so that the NPM ratio also increased to 15.77%, increasing the NPM ratio will increase the share price by Rp. 6,850.
Effect of Current Ratio (CR) and Net Profit Margin (NPM) on Stock Prices
This study found that the current ratio and net profit margin simultaneously affect stock prices, which shows that the value of fcount is 8.289 > Ftable of 3.34, meaning that simultaneously the two variables between the current ratio and net profit margin together, the financial statements can provide information for investors. all users of information in this case are not only investors (investors) but also creditors and the public.
The results of this study are supported by research conducted by Ria Andriyani (2012), Aditya (2014) Edwin (2016), Yuni Ferawati (2017), Roni (2019) that the current ratio and net profit margin have a simultaneous and significant effect on stock prices.
CONCLUSION
Current Ratio (Cr) has a negative effect on stock prices in food and beverage companies listed on the Indonesia Stock Exchange with a value of tcount = -5.943 which is smaller than ttable = 1.701. Net Profit Margin (NPM) has a positive and significant effect on stock prices in food and beverage companies listed on the Indonesia Stock Exchange with a tcount of 239,410 > ttable 1,701 with a significance of 0.000 less than 0.05. Current ratio (CR) and Net Profit Margin (NPM) simultaneously affect stock prices in food and beverage companies listed on the Indonesia Stock Exchange which shows that the value of fcount is 8.289 > Ftable of 3.34.
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