The Effect of Current Ratio, Debt to Equity Ratio, Return on Equity Ratio and Price Earning Ratio on Stock Prices in the Food and Beverage Sector listed on the Indonesian Stock Exchange

Financial ratio analysis is the activity of comparing numbers in a financial report. Comparisons can be made between one component of the financial statements or between elements that exist between financial statements and it is possible to compare figures in one or several periods (Kasmir, 2015). Aspects in the financial statements will be the basic assessment, which is the key for investors in investing their funds (Haryanto, 2014). There are several ratios that can be used as a benchmark for stock prices, namely Current Ratio (CR), Debt To Equity Ratio (DER), Return On Equity (ROE) and Price Earning Ratio (PER). The inconsistency of research results that examine the effect of ROA and DER on income smoothing practices shows that previous studies have not been conclusive, thus encouraging researchers to conduct further research. This research was conducted on issuers of the food and beverage sector listed on the Indonesia Stock Exchange for the 2017-2020 period. The population of this study is the issuers of the food and beverage sector listed on the Indonesia Stock Exchange for the 2017-2020 period as many as 19 companies. The sampling method used in this study was purposive sampling method so that a sample of 12 issuers was obtained. The type of data used in this study is quantitative data, and the source of data used in this study is secondary data. The data collection technique used in this research is through the documentation method. The data analysis technique used in this research is multiple linear regression analysis. The results showed that the ROE variable had a significant negative effect on the practice of income smoothing, while the variables CR, DER and PER had a significant positive effect on the practice of income smoothing