DETERMINAN FINANCIAL DISTRESS PADA PERUSAHAAN YANG MENGALAMI FINANCIAL DISTRESS DAN NON FINANCIAL DISTRESS

Abstract

This research aimed to analyze the difference of financial ratio between the companies who had experienced financial distress with non financial distress and also analyze the financial ratio capability in order to indicate the financial distress. While, financial ratio was measured by current ratio, quick ratio, debt to asset ratio, debt to equity ratio, total asset turnover, return on asset, and sales growth. Furthermore, this research was quantitative. Meanwhile, the sample collection method used purposive sampling, it obtained 72 samples from 9 retail companies and 9 food and beverage companies which were listed on the Indonesia Stock Exchange in the periods of 2016-2019. On the other hand, the research method used Mann-Whitney U and Binary Logistic Regression. The research result concluded a difference in current ratio, quick ratio, debt to asset ratio, total asset turnover among the company who had experienced financial distress with non financial distress, while there was no difference between debt to equity ratio and sales growth. Additionally, the result of this research showed that current ratio, quick ratio, return on asset were capable of indicating financial distress, on the other hand, debt to asset ratio, debt to equity ratio, total asset turnover, and sales growth was incapable of indicating financial distress.
Keywords: financial distress, non financial distress, financial ratio