PENGARUH ARUS KAS, PROFITABILITAS, DAN LIKUIDITAS TERHADAP FINANCIAL DISTRESS

Abstract

This research determines (1) the effect of operational cash flow on financial distress, (2) the effect of profitability on financial distress, and (3) the effect of liquidity on financial distress. Furthermore, the population consists of Property and Real Estate sector companies listed on the Indonesia Stock Exchange during 2021-2023. The research applies quantitatively with secondary data. The data were in the form of the company's financial statements. Moreover, the data collection technique used was purposive sampling, in which the sample was based on the criteria given. In line with that, 42 data samples from 14 companies in the population were taken. Additionally, the data analysis technique used was logistic regression with SPSS (Statistical Product and Service Solutions) version 25. The result shows that (1) operational cash flow does not affect the financial distress, (2) profitability, which was measured by Return On Assets (ROA), does not affect the financial distress, and (3) liquidity, which was measured by Current Ratio, has an effect on financial distress. In brief, the three variables, namely operational cash flow, profitability, and liquidity, overall have a significant effect on financial distress.