PENGARUH PROFITABILITAS, LIKUIDITAS, LEVERAGE, DAN AKTIVITAS TERHADAP FINANCIAL DISTRESS

Abstract

This research aimed to find out the effect of profitability ratio proxy with return on assets (ROA), meanwhile, liquidity was proxy with current ratio (CR), leverage was proxy with debt to assets ratio (DAR), and activity was proxy with total assets turnover (TATO) on the financial distress at a retail trading company listed on Indonesia Stock Exchange (IDX) in 2016-2019 periods. This research used quantitative data with secondary data in the company's annual financial report. Furthermore, the research population used retail trading companies listed on the Indonesia Stock Exchange (IDX) in the 2016-2019 periods. Moreover, the sample collection technique used purposive sampling, it obtained 19 companies with 76 observations data which consist of 25 samples of financial distress companies and 51 research samples of non-financial distress. The data analysis method of this research used logistic regression analysis with the software instrument of the SPSS 25 version. Based on the research result indicated that profitability had positif and significant on the financial distress. On the other hand, liquidity, leverage, and activity had insignificant effect on the financial distress at a retail trading company listed on Indonesia Stock Exchange (IDX).
Keywords: profitability, liquidity, leverage, activity, financial distress.