Financial ratios have no impact on stock returns, study finds.
The study looked at factors that affect stock market returns for manufacturing companies in Indonesia from 2013 to 2016. They examined things like debt levels, profitability, liquidity, and company size. The results showed that factors like return on assets, return on equity, quick ratio, earnings per share, net profit margin, residual income, firm size, price earnings ratio, and debt to equity ratio do not impact stock returns.