Islamic Banking : Jurnal Pemikiran dan Pengembangan Perbankan Syariah
Vol 10 No 1 (2024): Islamic Banking:Jurnal Pemikiran dan Pengembangan Perbankan Syariah - Agustus 20

Financial Distress: Ratio of Financial Statements of Mining And Metals Companies

Pebriani, Reny Aziatul (Unknown)
Syafitri, Lili (Unknown)
Meiriasari, Vhika (Unknown)



Article Info

Publish Date
05 Aug 2024

Abstract

This research aims to determine the influence of profitability, leverage and liquidity on financial distress in the mining and metals company sub-sector in Indonesia during the 2018-2022 Period. Profitability is measured using Return on Assets (ROA), leverage is measured by Debt to Equity Ratio (DER), and liquidity is measured using Current Ratio (CR). Financial distress was identified using the Altman Z-score model. This type of research is a quantitative research sampling in this study using purposive sampling techniques and data that has been processed for this study as many as 11 Mining and Metal companies listed on the Indonesia Stock Exchange. The data source in this study uses a secondary data source sourced from the Annual Report published by mining and metals companies listed on the Indonesia Stock Exchange. The data analysis used in this study used Descriptive Satistic analysis, Pooled Data, Chow Test, Hausman Test, Fixed Effect, Partial Test, Determination Coefficient Test (R2). The test results showed that the Return on Asset (ROA) variable, Debt to Equity ratio (DER), did not have a significant effect on financial distress, while the Current Ratio (CR) had a significant effect on financial distress in Mining and Metal Companies listed on the Indonesia Stock Exchange in 2018-2022. The Result of this study is that profitability, leverage, and liquidity significantly affect the condition of financial distress in mining and metals sub-sector companies in Indonesia.

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Journal Info

Abbrev

isbank

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences

Description

Islamic Banking : Jurnal Pemikiran dan Pengembangan Perbankan Syariah is an open access peer-reviewed online journal that provides a forum for sharing scientific studies on Islamic economics and banking. Editors welcome articles and research reports that address current issues such as: sharia ...