Authors : DG Ahmadi Bin Abdoul Makasi

Volume/Issue : Volume 11 - 2026, Issue 4 - April

Google Scholar : https://tinyurl.com/3zrh2sj8

Scribd : https://tinyurl.com/2syt4sy3

DOI : https://doi.org/10.38124/ijisrt/26apr1175

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This study investigates the effect of financial health on firm value at GCM over the period 2004–2023. The objective is to examine the causal relationship between financial health indicators and company valuation. A quantitative analytical research design was adopted using secondary data from GCM’s annual financial reports, covering 20 years of observations. Financial health was assessed using the Current Ratio, Debt-to-Equity Ratio, Long-Term Debt-to-Equity Ratio, Return on Assets (ROA), and Return on Equity (ROE), while firm value was measured by Adjusted Net Asset Value (ANAV). Data were analyzed using ratio analysis, descriptive statistics, correlation, and multiple regression techniques. Results indicate that although GCM’s financial position has improved over time, it remains structurally fragile. Regression findings (R-Squared = 0.8663) show that 86.63% of the variation in ANAV is explained by financial health indicators. The study confirms a strong and statistically significant relationship between financial health and firm valuation.

Keywords : Financial Health; Firm Valuation; Liquidity; Solvency; Profitability; Adjusted Net Asset Value (ANAV).

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