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This study aims to examine the effect of liquidity, solvency, and profitability on the financial performance of pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2025 period. Liquidity is proxied by the Current Ratio (CR), solvency by the Debt to Equity Ratio (DER), profitability by the Net Profit Margin (NPM), and financial performance by the Return on Assets (ROA). This study employed a quantitative approach with a causal associative research design. The sample was selected using the purposive sampling technique, resulting in 10 companies with 50 balanced panel observations. Secondary data were obtained from the annual financial reports of the sample companies and analyzed using panel data regression with EViews 14. Based on the Chow Test and Hausman Test, the Fixed Effect Model (FEM) was selected as the most appropriate model. The results indicate that: (1) liquidity, as measured by CR, has no significant effect on financial performance (Prob. = 0.7327 > 0.05); (2) solvency, as measured by DER, has a positive and significant effect on financial performance (Prob. = 0.0000 < 0.05), although the direction is contrary to the proposed hypothesis; and (3) profitability, as measured by NPM, has a positive and significant effect on financial performance (Prob. = 0.0000 < 0.05). The Adjusted R² value of 89.08% indicates that the independent variables explain 89.08% of the variation in financial performance.
Keywords: Liquidity, Solvency, Profitability, Financial Performance, Pharmaceutical Companies.