PENGARUH RASIO KEUANGAN TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN SUBSEKTOR FOOD AND BEVERAGE

Abstract

This research aims to examine the effect of liquidity, profitability, and solvability on financial distress. Liquidity was measured by the current ratio, profitability was measured by Return On Asset, and solvability was measured by Debt to Asset. The research applies quantitatively. The population consists of Food and Beverage of processed foods industries listed on the Indonesia Stock Exchange (IDX). The data collection technique used purposive sampling, in which the sample was based on the criteria given. In line with that, 17 companies were taken as samples. Moreover, the data were collected for 5 years (2019-2023) with 85 total data samples. The data analysis technique used multiple linear regression with SPSS (Statistical Product and Service Solution) 26. The result indicates that liquidity has a significant effect on the financial distress of Food and Beverage of processed foods industries. Likewise, profitability has a significant effect on the financial distress of Food and Beverage of processed foods industries. However, solvability has an insignificant effect on the financial distress of Food and Beverage of processed foods industries.