Analysis Of The Relationship Between Capm Value, Wacc, And Return On Assets (Roa) In The Financial Context Of Pharmaceutical Companies: A Case Study On PT. Darya Varia, PT. Kimia Farma, PT. Kalbe Farma, PT. Pyridam, PT. Temposcan, and PT. Sido Muncul

Abstract

This study aims to analyze the relationship between Capital Asset Pricing Model (CAPM), Weighted Average Cost of Capital (WACC), and Return on Assets (ROA) in the financial context of pharmaceutical companies in Indonesia. The study focused on six leading pharmaceutical companies, namely PT. Darya Varia, PT. Kimia Farma, PT. Kalbe Farma, PT. Pyridam, PT. Tempo Scan, dan PT. Sido Muncul. In this study, financial data from each company was analyzed to identify the influence and correlation between CAPM, WACC, and ROA.

The results showed that there was a significant relationship between CAPM and ROA, as well as between WACC and ROA in the pharmaceutical companies studied. Higher CAPMs tend to correlate with higher ROAs, indicating that companies with higher expected rates of return are able to utilize their assets more efficiently. In contrast, a higher WACC indicates a larger cost of capital, which can affect a company's profitability.

This analysis provides in-depth insights into the financial performance of pharmaceutical companies in Indonesia, as well as provides guidance for company management in strategic decision-making. By understanding the relationship between CAPM, WACC, and ROA, pharmaceutical companies can optimize their capital structures, better manage risk, and improve asset use efficiency to achieve better financial performance.

The study also highlights the importance of effective financial management in dealing with the challenges of the pharmaceutical industry, such as strict regulation, intense competition, and high research and development costs. Thus, this study contributes to the corporate financial literature in the context of the pharmaceutical industry and provides practical recommendations for stakeholders in the industry.