Analisa Kinerja Keuangan Terhadap Financial Distress Pada Perusahaan Tekstil dan Garment Di BEI

Abstract

This research is using quantitative study aimed to see the influence of liquidity, leverage, and profitability on financial distress. This research using textile and garment company that listed in Indonesian Stock Exchange as sample. The dependent variable in this study is financial distress and the independent variable in this study is liquidity that measured by current ratio, leverage that measured by debt to total asset ratio and profitability that measured by return on asset ratio. The sampling method in this study is using purposive sampling method. The sample used in this study is 17 Textile and garment company. The type of data used on this study is secondary data. This study is using Regression Logistic Analisys to testing the hypothesis. The result on this research is there are no influence of Leverage and Profitability to financial distress, and there is negative influence of Liquidity to financial distress.
 
 Keyowords : liquidity, leverage, profitabily, financial distress, logistic

The Effect of Profitability, Liquidity, and Solvency on Financial Distress of Textile and Garment Companies in Indonesia

“…The results of this study are in accordance with previous distress studies (Atika et al, 2020;Hendriani et al, 2021;Yusbardini & Rashid, 2019). The results of this study contradict previous studies (Ardi et al, 2020;Shidiq & Khairunnisa, 2019;Zhafirah & Majidah, 2019).…”

“…Financial distress occurs because the company cannot pay the company's operations due to losses (Schwartz, 2005). Low or negative profitability indicates that the company has difficulty in financing operations and must use retained profit so that the company has a great chance of (Schwartz, 2005) financial distress (Ardi et al, 2020). Profitability indicators become auxiliary indicators in evaluating the condition of the company's financial difficulties.…”

“…Companies will be vulnerable to financial distress if the company's liquidity ratio is low (Balasubramanian et al, 2019). Low liquidity will be prone to problems regarding shortterm liability payments (Ardi et al, 2020). The difficulty of paying short-term obligations is an indication of the company experiencing financial distress (Ardi et al, 2020;Balasubramanian et al, 2019;Schwartz, 2005) Previous research has stated that liquidity has a negative and significant effect on financial distress (Ardi et al, 2020;Shidiq & Khairunnisa, 2019;Zhafirah & Majidah, 2019).…”

“…Low liquidity will be prone to problems regarding shortterm liability payments (Ardi et al, 2020). The difficulty of paying short-term obligations is an indication of the company experiencing financial distress (Ardi et al, 2020;Balasubramanian et al, 2019;Schwartz, 2005) Previous research has stated that liquidity has a negative and significant effect on financial distress (Ardi et al, 2020;Shidiq & Khairunnisa, 2019;Zhafirah & Majidah, 2019). There is a research gap that explains that the liquidity ratio has a positive and significant effect on financial distress (Atika et al, 2020;Hendriani et al, 2021;Yusbardini & Rashid, 2019).…”

Determination of Financial Performance on Prediction Financial Distress

“…Hidayat et al [6] research show that CR and DER have positive effect, ROA have a negative effect, while operating cash flow has no effect on FD conditions. However, Ardi [7] show that there is no effect between DTA and ROA on FD, but there is a negative effect of CR.…”