PENGARUH KINERJA KEUANGAN TERHADAP FINANCIAL DISTRESS

Abstract

This research examined the effect of liquidity, leverage, profitability, and sales growth on financial distress. Current Ratio (CR) measured liquidity, Debt to Assets Ratio (DAR) measured leverage, Return On Assets (ROA) measured profitability, and Sales Growth Ratio measured Sales Growth (SG). The research was quantitative. The population was Food and Beverage manufacturing companies listed on the Indonesia Stock Exchange (IDX). Moreover, the data collection technique used purposive sampling. In line with that, there were 22 companies in the sample. The data were taken for 5 years (2018-2022). In total, 110 data were analyzed. Furthermore, the data analysis technique used multiple linear regression with SPSS (Statistical Product and Service Solution) 26 versions. The result showed that liquidity had a positive effect on financial distress. However, leverage did not affect financial distress. In contrast, profitability had a positive effect on financial distress. Likewise, sales growth had a positive effect on financial distress.