Oct 2026· Scientific Journal of Reflection· Vol 9, pp. 1567-1575· 0 citations
Abstract
The agricultural sector plays an important role in supporting economic growth and food security; however, companies in this sector face various challenges related to financial performance and market valuation. Firm value is an important indicator that reflects investors’ perceptions of a company’s future prospects and performance. Therefore, understanding the factors that influence firm value is essential, particularly in agricultural companies listed on the Indonesia Stock Exchange. This study aims to examine the partial and simultaneous effects of Liquidity (Current Ratio), Profitability (Return on Investment), and Working Capital Turnover on Firm Value (Price to Book Value) in agricultural sector companies listed on the Indonesia Stock Exchange during the 2021–2024 period. This research employs a quantitative approach with an associative method. The sample consists of 12 companies with 48 observations. The data analysis technique used is multiple linear regression conducted using SPSS 20. The results indicate that Return on Investment is the only variable that has a positive and significant effect on Firm Value, demonstrating that higher profitability improves investors’ confidence and enhances company valuation. Meanwhile, Current Ratio and Working Capital Turnover do not have a significant partial effect on Firm Value, indicating that liquidity and working capital efficiency are not the main determinants of firm valuation. Simultaneously, Liquidity, Profitability, and Working Capital Turnover have a significant effect on Firm Value, confirming the importance of these financial factors when considered collectively. The Adjusted R Square value of 19.3% indicates that the model explains a limited proportion of Firm Value, while the remaining 80.7% is influenced by other factors outside the research model.
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