| Financial ratio can be used as a tool to predict future financial condition. By performing analysis in financial ratio, business stakeholders and financial report users can forecast the future of company financial condition and its' impacts to the company values. Signalling theory pointed out the importance of information that is related to investment decision and is published by the company to the external parties. To determine investment decision, investor needs to gain an access to relevant, thorough, and precise information. Based on the previous conducted research, there are several factors that have major influence to the firm value, such as: Current Ratio, Total Asset Turnover, Debt to Equity Ratio, and Profitability. These factors share a strong relationship and influence to Firm Value inconsistency. This research is conducted to trial financial ratio's influence to the company profitability and its' impacts to the company values. This research incorporates exogenous variables, such as: Current Ratio, Total Asset Turnover, and Debt to Equity Ratio, and endogenous variables, such as: Profitability, and Firm Value. This research utilizes collected secondary data from 45 manufacture companies' financial reports that are registered and published in Indonesia Stock Exchange from 2010 until 2014. The results of this research highlighted the facts that: 1) Current Ratio has no significant impacts to the Profitability, 2) Total Asset Turnover has positive insignificant impacts to the Profitability, 3) Debt to Equity Ratio has significant influence and positive relationship to the Profitability, 4) Profitability has significant positive relationship to the Firm Value, 5) Current Ratio has no significant relationship to the Firm Value, 6) Total Asset Turnover has significant impacts and positive relationship to the Firm Value, and 7) Debt to Equity Ratio has significant impacts and negative relationship to the Firm Value. |