The Effect of Liquidity, Leverage, and Profitability on Stock Return of Production Goods Trade Companies Listed on the Indonesia Stock Exchange

Abstract

This study investigates the partial and simultaneous effects of Liquidity (Current Ratio/CR), Leverage (Debt to Asset Ratio/DAR), and Profitability (Return on Assets/ROA) on Stock Return within the Large-Scale Production Goods Trade Subsector listed on the Indonesia Stock Exchange (IDX) for the 2022–2024 period. A quantitative causal research design employing multiple linear regression analysis via IBM SPSS Statistics version 26 was adopted. Purposive sampling yielded a final sample of 22 companies comprising 60 valid firm-year observations after outlier removal. Partial hypothesis testing reveals that Liquidity (CR) exerts a negative and insignificant effect on Stock Return; Leverage (DAR) exerts a negative and statistically significant effect; and Profitability (ROA) exerts a positive and statistically significant effect. Simultaneously, all three independent variables significantly influence Stock Return, with an Adjusted R² of 14.7%, indicating that 85.3% of return variation is attributable to factors outside the present model