Proceedings of the Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2024)

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Analysis of the Effect of Net Profit Margin, Cash Conversion Cycle and Free Cash Flow on Company Value with Company Size and Dividend Payout Ratio as Moderation Variables

Authors
Ricky Lie Jaya1, Andreas Bambang Daryatno2, *
1Faculty of Economics and Business, Tarumanegara University, Jakarta, Indonesia
2Faculty of Economics and Business, Tarumanegara University, Jakarta, Indonesia
*Corresponding author. Email: andreasb@fe.untar.ac.id
Corresponding Author
Andreas Bambang Daryatno
Available Online 22 July 2025.
DOI
10.2991/978-2-38476-446-4_11How to use a DOI?
Keywords
Company Value; Net Profit Margin; Cash Conversion Cycle; Free Cash Flow; Company Size
Abstract

This study examines the influence of Net Profit Margin (NPM), Cash Conversion Cycle (CCC), and Free Cash Flow (FCF) on Company Value, with Company Size and Dividend Payout Ratio as moderating variables. The research focuses on Fast-Moving Consumer Goods (FMCG) companies listed on the Indonesia Stock Exchange during the period from 2020 to 2023. A purposive sampling method was applied, selecting companies that met the criteria for analysis. Data analysis was conducted using data pooling tests, classical assumption tests, and multiple linear regression, with hypothesis testing performed using SmartPLS 4. The results reveal that NPM and FCF have a significant positive effect on Company Value, while CCC shows no significant effect. Additionally, Company Size moderates the relationships between NPM and CCC with Company Value but does not significantly moderate the relationship between FCF and Company Value. Conversely, Dividend Payout Ratio fails to moderate the effect of NPM, CCC, and FCF on Company Value. These findings provide insights into the financial strategies that FMCG firms can adopt to enhance their market value.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2024)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
22 July 2025
ISBN
978-2-38476-446-4
ISSN
2352-5398
DOI
10.2991/978-2-38476-446-4_11How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Ricky Lie Jaya
AU  - Andreas Bambang Daryatno
PY  - 2025
DA  - 2025/07/22
TI  - Analysis of the Effect of Net Profit Margin, Cash Conversion Cycle and Free Cash Flow on Company Value with Company Size and Dividend Payout Ratio as Moderation Variables
BT  - Proceedings of the Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2024)
PB  - Atlantis Press
SP  - 93
EP  - 101
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-446-4_11
DO  - 10.2991/978-2-38476-446-4_11
ID  - Jaya2025
ER  -