PENGARUH PROFITABILITAS, LEVERAGE, DAN LIKUIDITAS TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN FOOD AND BEVERAGE DI BURSA EFEK INDONESIA

Abstract

This research aimed to examine the effect of profitability, leverage, and liquidity on financial distress of Food and Beverages Companies which were listed on Indonesia Stock Exchange 2012-2018. While, profitability was measured by Return On Asset, leverage was measured by Debt to Asset Ratio, and liquidity was measured by Current Ratio. This research was quantitative. Moreover, the population was 13 Food and Beverage companies. Furthermore, the data were secondary in the form of company’s financial statement. Additionally, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there was 91 samples. In addition the data analysis technique used logistic regressions with SPSS 21. The research result concluded profitability had negative and significant effect on financial distress. it happened as higher profit reflected how well the company’s performance. Consequently, it descreased the financial distress. On the contrary, leverage did not affect the financial distress. This meant, with the profit, company was able to spend its interest expenses which affect financial stability. Likewise, liquidity did not affect the financial distress. This happened as company’s fixed asset did not used for fixed debt. Besides, it did not require bigger liabilities.
Keywords: profitability, leverage, liquidity, financial distress.