MANFAAT LABA DAN ARUS KAS DALAM MENENTUKAN PREDIKSI KONDISI FINANCIAL DISTRESS

Abstract

Everycompany needs capital and cash flow in order to run its operational activities, pay off the liabilities, andshare the dividend to the stakeholders. The analysis of earnings ratio and cash ratio is a better predictor in predicting earnings and cash flow in the future. The samples are food and beverages companies which are listed in Indonesia Stock Exchange and these companies have been selected by using purposive sampling. The earnings ratio which is appliedin this research is the net profit efficiency ratio and the cash flow ratio which is applied in this research is cash flow efficiency ratio of the operational activities. The analysis is done by using which one is earnings ratio or cash flow ratio which can use in predicting the condition of financial distress of these companies. Based on the result of the analysis about earnings ratio and cash flow ratio in the group of food and beverages companies in Indonesia Stock Exchange, the performance of each ratio can be concluded as follow i.e.: the profit has significant influence to the prediction of financial distresscondition whereas the cash flow has insignificant influence to the prediction of financial distress condition on food and beverages company on Indonesia Stock Exchange. The company which has financial distress is PT. Indofood Sukses Makmur Tbk and PT. Siantar Top Tbk. Efficiency ratio based on the analysis result it can be concluded is the most efficient in managing the net profit and cash flow from the operational activities is PT. Multi Bintang Indonesia Tbk.
Keywords: Cash Flow, Efficiency Ratio, Financial Distress, Profit.