PENGARUH PROFITABILITAS, LIKUIDITAS, STRUKTUR MODAL, DAN UKURAN PERUSAHAAN TERHADAP FINANCIAL DISTRESS

Abstract

This research aims to examine the effect of profitability, liquidity, capital structure and firm size on the financial distress. Profitability was measured by Return On Asset, liquidity was measured by Current Ratio, capital structure was measured by Debt to EquityRratio, and firm size was measured by natural total asset logarithm. Meanwhile, the financial distress was measured by Altman Zzscore modification (1995). The research applies quantitatively. Furthermore, the data were secondary, which in the form a company financial statement. The data collection sample used purposive sampling method i.e., a sample selection with determined criteria so that it obtained 150 data from 30 retail companies listed on the Indonesia Stock Exchange (IDX). The research data was taken for 5 years in 2019-2023. Meanwhile, the research analysis method used multiple linear regressions analysis with the SPSS program. The research result indicated that profitability and liquidity have a negative effect on the financial distress. However, the capital structure does not affect the financial distress. In contrast, firm size has a negative effect on the financial distress.