EFFECTS OF RETURN ON ASSET, DEBT TO ASSET RATIO, CURRENT RATIO, FIRM SIZE, AND DIVIDEND PAYOUT RATIO ON FIRM VALUE

The goal of this study is to determine how several financial indicators, such as Return on Assets (ROA), Debt to Equity Ratio (DER), Debt to Asset Ratio (DAR), Current Ratio (CR), business Size, and Dividend Payout Ratio (DPR), relate to business value. A number of these indicators affect firm value, which is a crucial gauge of a business's success and allure to investors. The profitability of a business in relation to its total assets is determined by its return on assets, or ROA. Increased company value is usually the result of efficient asset usage, which is shown by a greater ROA. On the other hand, too much leverage can hurt a company's value and reduce profitability. The debt to equity ratio (DER) and debt to asset ratio (DAR) show how much of a corporation is financed by debt. Although modest debt levels can While large debt levels can improve profits, they can also raise financial risk and lower corporate value. The Current Ratio (CR) gauges how well a business can use its short-term assets to pay off its short-term liabilities. Better liquidity and financial soundness are implied by a greater CR, which increases business value. business size may affect business value through economies of scale, market recognition, and resource availability. It is commonly assessed by market capitalization or total assets. Because of their stability and market dominance, larger companies may be viewed as having more value. The percentage of earnings given to shareholders in the form of dividends is represented by the dividend payout ratio, or DPR. A greater DPR may draw income-seeking investors but may also reduce possibilities for reinvestment, which might have an effect on the firm's value and future growth prospects.