THE RELATIONSHIP BETWEEN FINANCIAL RATIOS AND COMPANY PERFORMANCE: AN EMPIRICAL STUDY ON THE COAL SUB-SECTOR OF THE IDX 2020–2023

Authors

  • Wahyu Indah Mursalini Universitas Mahaputra Muhammad Yamin
  • Ida Nirwana Universitas Mahaputra Muhammad Yamin
  • Agita Dewi Fortuna Universitas Mahaputra Muhammad Yamin

DOI:

https://doi.org/10.47663/jmbep.v11i2.648

Keywords:

Manajemen

Abstract

Abstract. This study aims to investigate the correlation between financial ratios and corporate performance, focusing on coal sub-sector companies listed on the Indonesia Stock Exchange (IDX) during the period from 2020 to 2023. Employing a quantitative approach, the study utilizes regression analysis to assess how liquidity and profitability ratios influence financial performance. The findings reveal that the liquidity ratio has a statistically significant impact on financial performance, evidenced by a p-value of 0.000, which is below the 0.05 threshold. Conversely, the profitability ratio does not exhibit a significant influence, as indicated by a p-value of 0.440, which exceeds the 0.05 benchmark. These findings suggest that investors should assess a company's financial health before making business decisions. The liquidity ratio plays a crucial role in determining the financial performance of coal sub-sector companies.

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Published

2025-09-17

How to Cite

Indah Mursalini, W., Nirwana, I., & Dewi Fortuna, A. (2025). THE RELATIONSHIP BETWEEN FINANCIAL RATIOS AND COMPANY PERFORMANCE: AN EMPIRICAL STUDY ON THE COAL SUB-SECTOR OF THE IDX 2020–2023. Jurnal Manajemen Bisnis Eka Prasetya Penelitian Ilmu Manajemen, 11(2), 77–88. https://doi.org/10.47663/jmbep.v11i2.648

Issue

Vol. 11 No. 2 (2025): Edisi September 2025

Section

Articles

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