ANALYSIS OF THE INFLUENCE OF FINANCIAL PERFORMANCE ON COMPANY VALUE

Abstract

This study aims to analyze the effect of Current Ratio, Return on Equity, and Debt to Equity Ratio on company value as measured by Price to Book Value in energy sector companies listed on the Indonesia Stock Exchange for the period 2020–2024. The method used is a quantitative approach with panel data regression analysis on 16 companies with a total of 80 observations. The results of the study indicate that Current Ratio does not have a significant positive effect, Return On Equity has a significant positive effect on company value, and Debt to Equity Ratio does not have a significant negative effect. These findings indicate that investors consider profitability and funding structure more in assessing energy sector companies, rather than short-term liquidity. Return On Equity reflects the efficiency of capital management, while proportional Debt to Equity Ratio reflects a productive financing strategy. This study contributes to management and investors in decision making based on financial indicators.