Seybold Report ISSN: 1533-9211
Rita Yuniartia, Fajar Sixsonb, Shenny Ris Aryagustinc, Maria Okthavyana Chandrad, Rury Sagita Amalia Putrie, Imanudinf
University of Widyatama, Bandung, Indonesia
Vol 17, No 10 ( 2022 ) | DOI: 10.5281/zenodo.7157311 | Licensing: CC 4.0 | Pg no:1597-1609 | Published on: 07-10-2022
Abstract
Identification of financial trouble conditions is important because a company will experience financial trouble conditions first before experiencing bankruptcy or liquidation. This study's independent variables were liquidity ratio, leverage ratio, profitability ratio, activity ratio, and growth ratio. Financial distress is a dependent variable in this study. This research purposed to find out the variable influence of liquid asset ratio, leverage ratio, activity ratio, profitability ratio and growth ratio on financial trouble predictions in transportation companies reported on the Indonesia Stock Exchange (IDX) in 2016-2020. In this study, the hypothesis was obtained that there was a simultaneous and partial impact of financial ratios on financial distress by taking 11 companies reported on IDX as the population with survey sampling sample method uses an explanatory method of a company that constantly published financial and annual reports for the five periods 2016 - 2020. This data analysis uses multiple linear regression methods using SPSS 25. The outcome of the fluctuation survey, overall calculation of financial ratio, significantly impacts the prediction of financial trouble. Based on the research results, the liquidity ratio, activity ratio, and growth ratio have a significant effect on financial distress. On the other hand, the ratio of leverage and profitability does not significantly impact financial difficulties.
Keywords:
Financial Distress, Liquidity Ratio, Leverage Ratio, Profitability Ratio, Activity Ratio, Sales Growth