PENGARUH PROFITABILITAS, LIKUIDITAS DAN LEVERAGE TERHADAP FINANCIAL DISTRESS

Abstract

Financial distress is a decrease of financial condition which happens before facing bankruptcy. While, this research aimed to exmine the effect of profitability, liquidity, and leverage on the financial distress. Profitability was measured by Return on Asset Ratio, Liquidity was measured by Current Ratio, Leverage was measured by Debt to Asset Ratio and Financial Distress was measured by Altman Z-Score. Moreover, the population was textile and garment companies which were listed on Indonesia Stock Exchange (IDX) 2015-2018. The researched was quantitative. Furthermore, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there 15 textile and garment manufacturing companies which were listed on Indonesia Stock Exchange (IDX) 2015-2018 with 60 observations. In addition, the data analysis technique used logistic regression with SPSS 25. The research result concluded profitability (ROA) had negative effect on the financial distress. On the order hand, liquidity (CR) did not affect the financial distress. Likewise, leverage (DAR) did not affect the financial distress.
Keywords: Profitability, Liquidity, Leverage, Financial Distress