ANALYSIS OF THE EFFECT OF RETURN ON ASSETS, RETURN ON EQUITY, AND NET PROFIT MARGIN ON EARNINGS PER SHARE IN COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE IN 2022

Abstract

This study aims to determine the effect of profitability ratios, namely Return on Assets, Return on Equity, and Net Profit Margin, on Earnings per Share. The method used in this study was designed quantitatively using cross-sectional data based on the 2022 Statistical Report issued by the Indonesia Stock Exchange (IDX). Sampling was conducted using the purposive sampling method, with the criteria being that companies had conducted an IPO and were listed on the Indonesia Stock Exchange, and that companies had EPS, ROA, ROE, and NPM values > 0. The analysis method used was multiple linear regression analysis, which also included classical assumption analysis. The results of the study indicate that Return on Assets and Return on Equity have a positive and significant effect on Earnings per Share. Meanwhile, Net Profit Margin has a positive but insignificant effect on Earnings per Share.