PENGARUH LIKUIDITAS DAN PROFITABILITAS TERHADAP FINANCIAL DITRESS PADA SEKTOR CONSUMER CYCLICALS INDUSTRI AUTOMOBILES DI BEI

Abstract

This research examines the effect of liquidity and profitability on the financial distress of the consumer cyclical sector. Liquidity was referred to as the Current Ratio, profitability was referred to as the Return on Assets (ROA), and financial distress was referred to as the Debt to Equity Ratio. The research applies quantitatively. Furthermore, the population comprises Automotive companies 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, there were 11 Automotive companies as the samples. Moreover, the data were taken for 4 years (2020-2023). Therefore, there were 44 data samples. The data used were secondary, in the form of financial statements and annual reports. The data analysis technique used multiple linear regression with SPSS 25. The results shows both liquidity and profitability have a negative and significant effect on financial distress.