Kinerja: Jurnal Bisnis dan Ekonomi
Vol. 25 No. 2 (2021): KINERJA

The Role of Financial Ratios on the Financial Distress Prediction

Devi Wahyu Utami (Tidar University)
Hanung Eka Atmaja (Tidar University)
Heni Hirawati (Tidar University)



Article Info

Publish Date
20 Sep 2021

Abstract

Predictions of financial distress has a central role for the company's going concern aspects. This research aims to empirically prove the role of profitability, leverage and liquidity in financial distress. The research population comprised all companies incorporated in the agricultural sector as well as basic industry and chemical sectors. The research sample obtained as many as 380 observations through the purposive sampling method. This study uses logistic regression analysis. This study provides evidence of significant role between profitability and liquidity on financial distress condition in the agricultural sector as well as the basic industry and chemical sectors. In the basic industry and chemical sectors, leverage has a significant role on financial distress condition.

Copyrights © 2021