Financial Ratio Analysis of Financial Sector Companies Listed on the Indonesia Stock Exchange in 2020-2022

Septiawan Eka Saputro¹, Yoosita Aulia²

Abstract

Financial sector companies have an important role in financing investment and development, as well as mediating in supporting economic growth. This research was conducted to analyze the financial performance of companies in the financial sector listed on the Indonesia Stock Exchange for the 2020-2022 period. Financial performance is measured by analyzing financial reports using liquidity ratios (cash ratio and current ratio), leverage ratios (debt to equity ratio), and profitability ratios (net profit margin, return on assets, and return on equity). The population in this research is financial sector companies listed on the Indonesia Stock Exchange and the sampling technique  uses a purposive sampling technique in which there are financial sector companies included in the LQ45 index. The research results show that the cash ratio and current ratio partially have no effect on the company’s return on equity, while debt to equity, net profit margin, and return on assets partially have an effect on the return on equity. And simultaneously, cash ratio, current ratio, debt to equity, net profit margin, and return on assets influence return on equity