PENGARUH AKTIVITAS, LEVERAGE DAN PERTUMBUHAN PENJUALAN TERHADAP KONDISI FINANCIAL DISTRESS

Abstract

This research aimed to find out the effect of activity, leverage and sales growth on financial distress condition of various industry companies which were listed on Indonesia Stock Exchange during 2017-2018. While, the activity was measured by Inventory Turnover, leverage was measured by Debt to Asset Ratio and sales growth was measured by Sales Growth.The research was quantitative. Moreover, the data were secondary, which in form of companies financial statement. Furthermore, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there were 48 samples from 24 various industry companies which were listed on Indonesia Stock Exchange during 2017-2018. In addition, the data analysis technique used logistics regression analysis with Statistical Product and Service Solution (SPSS) 23. The research result concluded leverage had positive effect on financial distress condition. Likewise, sales growth had positive effect on financial distress condition. On the other hand, activity did not affect financial distress condition.
Keywords: inventory turnover, debt to asset ratio, sales growth