Analysis of Financial Performance on the Prediction of Financial Distress in the Indonesia Stock Exchange

Abstract

This study aims to determine the effect of liquidity ratios, profitability ratios, economic profitability ratios and leverage ratios on the prediction of financial distress in the banking sector on the Indonesia Stock Exchange. This study uses a quantitative approach. The sample used is data on the banking sector that has gone public with a total of 10 banks for the 2020-2022 period. The analysis technique used in this study is the classical assumption test, multiple linear regression analysis of determination analysis and hypothesis testing with the T-Test and F-Test. The results of the study show that the Liquidity Ratio, Profitability Ratio, Earnings Ratio and Leverage Ratio affect the Prediction of Financial Distress of banking companies on the Indonesia Stock Exchange by 78.3% and the remaining 21.7% is influenced by other factors not examined in this study. The profitability ratio is the ratio that has the most dominant influence on the prediction of a company's Financial Distress

Financial Performance and Market Trends in the Global Financial Services Company Goldman Sachs Group, Inc

“…In recent years, GS has implemented a variety of cost-cutting and efficiency-improvement initiatives. These initiatives have contributed to the company's increased profitability and margins (Christos, n.d.; Imelda Hutabarat et al, 2023;Nuryani, 2023).…”

“…Urban et al, 2022). The study on trends affecting financial services profitability emphasizes the impact of interest rates and other macroeconomic factors on the performance of financial services organizations, particularly banks (Nuryani, 2023;Virparia & Panchal, 2023). The article also discusses the actions taken by financial institutions to prepare for the coronavirus pandemic, as well as the predicted growth of the global financial services market.…”

“…To uncover key trends and patterns, the research will look into key financial metrics and macroeconomic factors influencing the company's performance (Goldman et al, 2021;Hatzius et al, 2023). Profitability, liquidity, and solvency ratios have been computed to measure the company's financial health over a five-year period (Handyansyah & Sukarno, 2023;Nuryani, 2023;Zhai & Zhang, 2023). Additionally, stock performance and dividend payouts for the previous twelve months have been evaluated to measure investor sentiment and the company's capacity to generate shareholder value (Hudson, 2010;Laksmiwati et al, 2023;Rahman & Rachmi, 2023).…”