The Impact of Profitability, Leverage, and Liquidity on Firm Value in Fast-Food Restaurants in Denpasar
Abstract
This study aims to analyze the impact of profitability, leverage, and liquidity on firm value in fast food restaurants in Denpasar City. The background of this research is based on the importance of financial performance in enhancing firm value amid increasing competition in the fast food industry. The study uses a quantitative approach with an associative research design, employing primary data collected through questionnaires distributed to employees who understand the operational and financial conditions of the company. The data were analyzed using multiple linear regression supported by statistical tests to ensure validity and reliability. The results indicate that profitability, leverage, and liquidity have a positive and significant effect on firm value, both partially and simultaneously. Profitability is identified as the most dominant variable influencing firm value. In conclusion, effective financial management through improving profitability, controlling leverage, and maintaining liquidity can enhance firm value sustainably.