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PENGARUH CURRENT RATIO, RETURN ON ASSETS, DAN DEBT TO EQUITY RATIO TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN SUB SEKTOR KONSTRUKSI NON BANGUNAN YANG TERDAFTAR DI BEI PERIODE 2018 – 2022 Putri, Fitriani Ade; Amelia, Rizka Wahyuni
Journal of Research and Publication Innovation Vol 2 No 4 (2024): OCTOBER
Publisher : Journal of Research and Publication Innovation

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Abstract

This study aims to examine the influence of Current Ratio, Return On Assets, and Debt To Equity Ratio on Financial Distress in Non-Building Construction Sub-Sector Companies listed on the Indonesia Stock Exchange (BEI) during the period 2018-2022. The method used is quantitative. The results of the F-test show that the variables Current Ratio, Return On Assets, and Debt To Equity Ratio collectively have a significant influence on Financial Distress at a significance level of (0.000000 < 0.05). The T-test results indicate that Current Ratio significantly affect Financial Distress with a value of (0.0000 < 0.05). However, the Return On Assets variable shows a p-value of (0.4478 > 0.05), indicating no significant influence on Financial Distress. Similarly, the Debt To Equity Ratio variable shows a p-value of (0.4985 > 0.05), suggesting no significant influence on Financial Distress. The Adjusted R Square of 0.905 indicates that the combined contribution of the variables significantly affects the dependent variable by 90.5%, with the remaining 9.5% influenced by factors outside the scope of this study.