Analysis of Cash Flow Components, Gross Profit, Earnings per Share on Stock Returns Manufacturing Company Listed in the Indonesian Stock Exchange from 2016 Until 2018

Abstract

The research objective was to determine the effect of cash flow components consisting of operating cash flow, investment cash flow, financing cash flow, gross profit, and earnings per share on stock returns. The population is the annual report of manufacturing companies listed on the Indonesia Stock Exchange for the period 2016-2018. Samples were taken of 32 company annual reports using purposive sampling method. Data collection using the documentation method. Data were analyzed using Multiple Linear Regression. The results of the operating cash flow analysis do not have a significant effect on stock returns. Investment cash flow has no significant effect on stock returns. Financial cash flow has no significant effect on stock returns and the results of gross profit analysis do not have a significant effect on stock returns. Meanwhile, earnings per share analysis has a significant effect on stock returns. Based on the results of the analysis, it can be concluded that the components of cash flow and gross profit are not reference variables for investors in making investment decisions and earnings per share are the main targets in making decisions. Therefore, companies must pay attention to earnings per share to attract investors. Keywords—cash flow components, gross profit, earning per share and stock return multiple linear regression