ABSTRACT
A funding gap may be reduced with debt instruments or by issuing shares to the capital market. When the latter option is preferred, the company ownership is no longer private but dispersed among the general public. A publicly listed company’s business performance can be measured through its financial statement. Before taking any decision to buy a company’s shares in the capital market, investors will first analyze them to see the potential profit. This research is aimed at analyzing if the Current Ratio (CR), Debt-to-Equity Ratio (DER), INventory Turnover (INTO), and Return On Investment (ROI) have influence on Price-Earnings Ratio (PER) of cement industry companies listed at Indonesia Stock exchange. To measure the relationships between variables, this study employed descriptive and verification methods. The results of an F-test show that CR, DER, INTO, ROI has significant influence on PER simultaneously as the Sig. F value is lower than 5%. It is also revealed that partially CR and DER do not have significant influence on PER, but INTO and ROI do.
