Analysis of the Determining Factors of Financial Distress (A Case Study at PT. Bank Rakyat Indonesia (Persero)

Abstract

Economic misery is a circumstance in which the debtor can not satisfy his/her duties to creditors after they fall due. economic distress is the country of the company experiencing economic problems and is threatened with financial ruin. The motive of this study become to decide the impact of Capital Adequacy Ratio (vehicle), Operational costs on working profits (BOPO), Non appearing Loans (NPL), loan to Deposite Ratio (LDR), and go back On belongings (ROA) on monetary distress. This studies changed into conducted at PT (restrained enterprise) bank Rakyat Indonesia (Persero) Tbk. The number of samples is 32 with purposive sampling method. information became gathered using a documentation method, specifically through quarterly monetary document data from 2013-2020 posted at the monetary offerings Authority internet site, www.o.k.go.identity. The effects of speculation testing suggest that the Capital Adequacy Ratio (vehicle) variable has a positive impact on economic misery. Operational fees on running profits (BOPO) have a nice impact on economic distress. Non-appearing loan (NPL) has a terrible effect on financial misery. mortgage to deposit ratio (LDR) has a terrible impact on monetary distress. return on belongings (ROA) has a high quality impact on economic distress. therefore, Capital Adequacy Ratio (automobile), Operational price to operating profits (BOPO), Non acting mortgage (NPL), loan to Deposit Ratio (LDR), and return On assets (ROA) simultaneously affect economic distress.

Determination of Financial Distress in Transportation Equipment Industry: Evidence from Indonesia

“…Companies must be able to suppress their operational activities so that the funds used can create profits from other activities. The research results are supported by, (Suidarma et al, 2022) and (Asyikin et al, 2018). According to (Zahronyana & Mahardika, 2018).…”

“…The OEOI variable which has a positive (+) indicates that an increase in OEOI has resulted in sharia commercial banks tending to experience financial distress. According to (Suidarma et al, 2022) Based on the results of the study, the significance of the value of workload on operating profit (OEOI) is less than 0.05. So it can be concluded that the variable running fee on working profit (OEOI) has an effective effect on monetary distress.…”