ANALYSIS OF LIQUIDITY RATIO, SOLVENCY AND PROFITABILITY ON SHARE PRICE IN. Astra International Tbk.

ANALYSIS OF LIQUIDITY RATIO, SOLVENCY AND PROFITABILITY ON SHARE PRICE IN. Astra International Tbk.

Intoduction

At this time competition in the business world becomes more stringent , enterprises which are not competitive then will not survive and will be eliminated from the business world . companies are required to increase production capacity, expansion efforts or to enrich types of products and also need adequate funding from different parties in order to survive in the business competition . One of the funding  that we know  is the capital market . Besides the accuracy,  investors should also be more selective when choosing the company, and one way to know it is by reading financial reports or financial performance of the company. Financial performance can be measured in several ways , such as liquidity, which reflects the company 's ability to meet short-term obligations of the enterprise, then identifies the solvency of enterprises in the cover medium-term obligations and long-term , and that is the ability of the company 's profitability by reaping the gains in a given period . Differences in results of some of these studies that identified on liquidity , solvency , and profitability effect on stock prices. Thus research related to the influence of liquidity , solvency , and profitability that need to be examined again emphasize the influence of the ratio of current liquidity ratios , solvency ratios whereas through in this case the ratio of debt to assets , and by profitability ratios in the case of the gross profit margin is .

Summary of Problems

Do Liquidity Ratio , Solvency and Provotabilitas significantly affect the price of shares in PT Astra International Tbk either partially or simultaneously?

The purpose of the examination

To find out if Ratio Liquidity , Solvency and Provotabilitas are significantly affect the price of shares in PT Astra International Tbk either partially or simultaneously.

Research Methods

The research was conducted in order to find out what variables that effect on the price of shares in PT . Astra International Tbk . This study emphasizes and focuses on a case study approach is by doing research at a certain time ( years 2008-2012 ) .

The data used is secondary data from 2008 to 2012 was collected from various sources , among which are:

·         Check the price of shares in PT . Astra International Tbk. ( www.finance.yahoo.com )

·         Financial overview of PT . Astra International Tbk . ( http://www.astra.co.id/index.php/profile/detail/2 ) .

Data Processing Method

The first step is getting the annual data about the current ratio , debt to asset ratio , and gross profit margin , and the stock price at PT . International Tbk years 2008-2012.

Step two is to calculate the relationship between each variable with multiple linear regression analysis that includes:

·         Determining the independent variable (independent ) and dependent variable ( dependent )

·         Determining manufacturing model regression model

·         Significant test of the model.

Discussion

Liquidity Ratio Calculation

Liquidity ratio used by the author is Current Ratio . Current Ratio is used to measure the company ability in fulfill short-term liabilities with current assets

Calculation of Current Ratio at PT . Astra International Tbk . Is as follows:

Current Ratio                   =  

             =         =  97.46%

             =         =  143.12%

             =         =  124.62%

             =         =  110.94%

             =           =  119.05%

Current ratio in 2008 showed that 97.46 % of each debt secured by Rp 1 , - asset . In 2009 the current ratio increases to 143.12 % , and in the next two years in 2010 and 2011 its current ratio decreased respectively to  124.62 % and 110.94 % , then rise again in 2012 that is about 119.05 % .

Solvency Ratio Calculation

Solvency ratios used by the author is Debt to Asset Ratio . Debt to asset ratio is used to indicate the extent to which the debt can be covered by assets , the greater the ratio more secure.

Debt to Asset Ratio Calculation at PT . Astra International Tbk . Is as follows:

Debt to Asset Ratio     =  

          =       =  12.43%

          =       =  10.12%

          =       =  11.80%

          =       =  25.46%

          =       = 29.35%

Debt to Asset Ratio in 2008 showed that each debt secured by 12.43% to Rp . 1 , - asset . Whereas in 2009 its debt to asset ratio of 10:12 % was decreasing , then in the next three years ie in 2010 , 2011, and 2012 debt to asset ratio at Pt . Astra International Tbk. consecutive increase their experience as much as 11.80 % , 25.46 % , and 29.35 %.

Profitability Ratio Calculation

Profitability ratios are used by the author is Gross Profit Margin . Gross profit margin is used to compare the gross profit by net sales , and the ratio is also used to indicate how much of the net sale is the gross profit.

Calculation of Gross Profit Margin at PT . Astra International Tbk .:

Gross Profit Margin   =   X 100%

          =       =  10.71%

          =       =  11.22%

          =       =  11.18%

          =       =  10.60%

          =       =  10.52%

Gross profit margin in 2008 showed that 10.71 % of each debt secured by Rp 1 , - asset . In 2009 its gross profit margin increased to 11.22 % , while the next three years  2010 , 2011 , and 2012 gross profit margin of PT . Astra International Tbk . decreased each 11:18 % , 10.60 % , and 10:52 %.

Hypothesis Test

Analysis of Partial Test ( Test t )

This test is to find out the availability of the influence of the independent variable on the dependent variables , while one or more other independent variables in controlled conditions .

Table of The Result of Partial Test Analysis ( Test T )

Current Ratio, Debt to Asset Ratio, and Gross Profit Margin

PT . Astra International Tbk .

Coefficientsa
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta
1	(Constant)	-163217,756	26612,594		9,133	,103
	Current Ratio	-87,207	29,499	-,534	7,956	,000
	Debt to Asset Ratio	678,461	72,301	2,188	9,384	,000
	Gross Profit Margin	15349,223	2626,936	1,841	6,843	,000
a. Dependent Variable: Stock Price

From the table above calculation, the results are :

a.       Partial coefficients for the current ratio

Based on the analysis performed above, t count coefficient is 7,956 , t tabel  coefficient (df = nk - 1 or df = 5-3-1 = 1 with an alpha of 5%) is 6,314 . Therefore, Ho is rejected and receive Ha . Therefore, it can be concluded that there is an effect on the ratio of the current stock price is positive and significant when the debt to asset ratio and the gross profit margin handled.

b . Partial coefficient for the debt to asset ratio

Based on the analysis performed above t calculation coefficients is 9384 , t_tabel coefficient (df=1 and alpha 5 %)  is at 6,314 . Therefore, Ho is rejected and receive H_a . Therefore, it can be concluded that there are influences on debt to asset ratio of stock price significantly and positively when the current ratio and the gross profit margin handled.

c . Partial coefficient for the gross profit margin

Based on the analysis performed above, t calculation coefficients is 5,843 t _tabel coefficient (df = 1 and alpha 5 % ) is at 6,314 . Therefore, Ho is rejected and receive H_a . Therefore, it can be concluded that there is an effect on the gross profit margin on stock price significantly and positively when the current ratio and the debt to asset ratio was handled.

Simultaneous Analysis Test ( Test F )

F test is used to determine the influence of the independent variable on the whole / in conjunction with the dependent variable .

Simultaneous Analysis Table Test ( Test F )

Current Ratio, Debt to Asset Ratio, and Gross Profit Margin

PT . Astra International Tbk .

ANOVAa
Model		Sum of Squares	Df	Mean Square	F	Sig.
1	Regression	30193156,646	3	10064385,549	56,127	,000b
	Residual	179313,354	1	179313,354
	Total	30372470,000	4
a. Dependent Variable: Stock Price
b. Predictors: (Constant), Gross Profit Margin, Current Ratio, Debt to Asset Ratio

From the table above the value of F = 56.127 and the significance of F = 0.098 , whereas alpha set is 5 % . Degree of Freedom is shown in calculation are DF1 = 3 and df2 = 1 . So, Ftable at the alpha level of 5 % with Df1 = 3 and df2=1 is 10.1.

Therefore F count > F table , is 56.127 > 10.1 then HO is rejected and Ha is accepted . So it can be concluded that there is a significant and positive influence of variable current ratio , debt to asset ratio , and gross profit margin on variable stock price.

Conclusion

 The evaluation of research and hypothesis testing model proposed in this study has some conclusions as follows:

1.      The analysis in this study received the first hypothesis (H1) because the test results showed significant correlation between the two variables is proposed earned value t count > t table namely 7,956 > 6,314 . It can be concluded that the liquidity ratio is positive and significant effect on stock price .

2.      The analysis of data in this study received the second hypothesis (H2) because the test results showed significant correlation between the two variables is proposed earned value value t count > t table namely 9,384 > 6,314. It can be concluded that the solvency ratio is positive and significant effect on stock price.

3.      The analysis of data in this study received the first hypothesis (H1)because the test results showed significant correlation between the two variables is proposed value t count > t table namely namely 6,843 > 6,314 . It can be concluded that the profitability ratio is positive and significant effect on stock price .

4.      The analysis of data in this study received a third variable hypothesis because the test results showed significant relationships between the four variables proposed and obtained value t count > t table  namely 56.127 > 10. So it can be concluded that there is a significant and positive influence on all three variables simultaneously namely liquidity ratio , solvency , profitability dfan the stock price variable .