Analysis of the Effect of Return On Asset and Sales Growth on Stock Return at BUMN in Indonesia

Abstract

This study aims to analyze the effect of Return on Asset (ROA) and sales growth (Sales Growth) on stock returns in state-owned companies listed in Indonesia. This study uses quantitative methods using multiple linear regression analysis to test the hypothesis. The results showed that ROA has a significant positive effect on stock return (SR), indicating that the efficient use of assets has a major impact on market appreciation. In contrast, Sales Growth (SG) shows a negative influence on SR, reflecting that sales growth does not always improve stock performance, especially if it is not accompanied by operational efficiency. That profitability is preferred by investors compared to sales growth, and provides recommendations for company management to focus on optimizing profitability and efficiency in the face of external factors such as a pandemic.