PENGARUH PROFITABILITAS, AKTIVITAS, LIKUIDITAS, LEVERAGE DAN ARUS KAS TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN TELEKOMUNIKASI

Abstract

This research aimed to examine the effect of profitability, activity, liquidity, leverage and cash flow on the financial distress. The research was quantitative. The sampling collection technique used purposive sampling. The sample was 35 from 5 telecommunication companies which were listed on Indonesia Stock Exchange 2011-2017. The data analysis technique used multiple linier reggresion with SPSS version 23. The research result concluded return on asset had positive effect on the financial distress as the bigger the return on asset, the higher financial distress would be. Total asset turnovet did not affect on the financial distress. It happened since the higher the total asset turnover, the more afficient the company used the asset. Current ratio did not affect on the financial distress because the company had the ability in fulfill its liability. Debt to equity ratio had negative effect on financial distress because the accumulated amount of debt to the capital was bigger to fulfill its liability in the long term. Cash flow did not affect on the financial distress as the total operation cash flow had fluctuations in the size of cash flow.
Keywords: Profitability, Activity, Liquidity, Leverage, Cash Flow Operation