Analysis of the Effect Liquidity, Leverage, Profitability and Sales Growth on Financial Distress (Altman Z-Score) (Empirical Study of Retail Sub - Sector Companies Listed on the Indonesia Stock Exchange (IDX) 2015-2019

Purwanti, Dewi

doi:10.47191/jefms/v5-i3-23

Cited by 13 publications

(15 citation statements)

References 9 publications

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“…The results of this study are in line with research conducted by Nabawi (2020) and Wangsih et al (2021) which state that sales growth has no effect on financial distress. However, this research is in contrast to research conducted by Purwanti & Syarif (2022) and Rochend & Nuryaman (2022) which states that sales growth has a positive and significant effect on financial distress.…”

Section: Effect Of Sales Growth On Financial Distresscontrasting

confidence: 85%

“…Increased sales growth will also increase company profits so that the possibility of companies experiencing financial distress will be smaller (Afrianti et al, 2022). Based on research conducted by Purwanti & Syarif (2022) states that the sales growth variable has a positive and significant influence on financial distress. This is because a high number of sales will cause the company to earn higher profits so that the financial condition becomes more stable and reduces the potential for the company to experience financial distress.…”

Section: Effect Of Sales Growth On Financial Distressmentioning

confidence: 99%

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Company Performance and Financial Distress in Automotive and Component Companies Listed on the Indonesia Stock Exchange

Triliana¹,

Sutrisno²

2023

IJMRA

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One of the company's efforts is to avoid financial distress which can result in the closure of the company. The purpose of this study was to examine the effect of financial performance on financial distress. Financial distress is measured using Altman's discriminatory theory or often referred to as the Altman Z-score, while company performance consists of profitability as measured by return on assets (ROA), liquidity is measured by current ratio (CR), leverage is measured by debt to equity ratio (DER). ), and sales growth. The population of this study were 13 automotive and component companies listed on the Indonesia Stock Exchange (IDX) and 12 companies were taken as a sample because one company had incomplete data. Hypothesis testing using multiple regression analysis with a significance level of 0.05. The results showed that profitability (ROA) and liquidity (CR) had a positive and significant effect on financial distress, while leverage (DER) had a significant but negative effect on financial distress. Other results show that free cash flow and sales growth have no significant effect on financial distress.

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Section: Effect Of Sales Growth On Financial Distresscontrasting

confidence: 85%

Section: Effect Of Sales Growth On Financial Distressmentioning

confidence: 99%

Company Performance and Financial Distress in Automotive and Component Companies Listed on the Indonesia Stock Exchange

Triliana¹,

Sutrisno²

2023

IJMRA

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“…The study conducted by Annisa & Chabachib, (2017)demonstrates that Distributed Energy Resources (DER) have a favorable and substantial impact on the profitability of stocks. Similarly, the research findings Purwanti, (2022) indicate that the leverage ratio, as measured by DER, has a beneficial impact on stock returns.…”

Section: The Effect Of Leverage On Firm Valuementioning

confidence: 63%

“…Prudent investors will be attracted to issuers that demonstrate a high degree of efficiency and effectiveness in managing corporate assets, as this leads to the attainment of firm profits, which are also expected to be substantial. The research conducted by Purwanti, (2022) demonstrates a positive correlation between profitability and stock returns. Therefore, a company's profitability will directly impact the upward movement of its share prices.…”

Section: The Influence Of Profitability On Firm Valuementioning

confidence: 98%

Influence of Moderation Leverage on The Relationship Between Profitability and Firm Value

Nuryaman,

Kartadjumena,

Hadi

2024

jebe

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Capital market investors anticipate their investments will appreciate and progress in line with their investment objectives, specifically to enhance investor well-being. The investment value appreciates when the issuer's share price or firm value rises. Several variables can impact the value of a company, with profitability and leverage being two significant influences. Prior studies have presented empirical proof that a firm's profitability and leverage can impact its value. This study examines the moderating impact of leverage on the association between profitability and company value. The study employed data from companies listed on the Indonesia Stock Exchange between 2019 and 2021. Currently, there are no studies that have investigated the impact of leverage as a moderating factor on the relationship between profitability and firm value. The data analysis revealed a strong positive correlation between profitability and firm valuation. Significant leverage levels have a considerable negative effect on a corporation's value. The interaction variable of profitability and leverage has a minimal effect on the relationship between profitability and firm value. The test results suggest that leverage modifies, diminishing the link between profitability and company value. However, it is essential to note that leverage is not demonstrated to be a substantial moderating variable in this relationship.

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“…A larger debt-to-equity ratio reduces the amount of capital available as collateral for debt. (Annisa & Chabachib, 2017;Purwanti, 2022) The current ratio is a quantitative measure employed to assess liquidity. Liquidity refers to a corporation's capacity to meet its financial commitments promptly.…”

Section: Introductionmentioning

confidence: 99%

Influence of Return On Assets (ROA), Debt To Equity Ratio (DER), Current Ratio (CR), Debt To Asset Ratio (DAR) On Stock Returns In Food And Beverage Sector Manufacturing Companies Listed On The Indonesia Stock Exchange For The Period 2018 - 2022

Marbun,

Ginting,

Munthe

et al. 2024

jebe

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This study seeks to examine the impact of Return on Asset (ROA), Debt to Equity Ratio (DER), Current Ratio (CR), and Debt to Asset Ratio (DAR) on Stock Return in manufacturing companies within the food and beverage industry sector listed on the Indonesia Stock Exchange from 2018 to 2022. The study will analyze the relationship between these variables both individually and simultaneously. The approach employed in this study is a quantitative methodology. From 2018 to 2019, 28 food and beverage industry production enterprises comprised 80 samples. This study utilized purposive sampling and employed various statistical tests, including the partial t-test, simultaneous F-test, classical assumption test, and adjusted R-square test. The test results indicate a significant relationship between Return on Assets (ROA) and Return on Sales (RS), as evidenced by the p-value of 0.003, which is less than the significance level of 0.05. (2) In the SPSS T-test, a sig value of 0.499>0.05 indicates no significant influence of DER on RS. (3) The results of the SPSS testing using the T-test show that the significance value is 0.484, more significant than 0.05. This condition indicates that CR does not have a significant influence on RS. (4) Based on the findings of the statistical significance test (p-value of 0.134>0.05), it may be inferred that DAR does not have a significant influence on RS. The calculated value of f, 4.664, is greater than the critical value of 2.49, and the significance level of 0.003 is less than the threshold of 0.05. Therefore, we can infer that the null hypothesis (H0) is rejected and the alternative hypothesis (Ha) is accepted. The Adjusted R Square value is 0.194, indicating that the independent variables can explain 19.4% of the variation in Y (RS). Other factors influence the remaining 80.6% of the variation.

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Analysis of the Effect Liquidity, Leverage, Profitability and Sales Growth on Financial Distress (Altman Z-Score) (Empirical Study of Retail Sub - Sector Companies Listed on the Indonesia Stock Exchange (IDX) 2015-2019

Cited by 13 publications

References 9 publications

Company Performance and Financial Distress in Automotive and Component Companies Listed on the Indonesia Stock Exchange

Company Performance and Financial Distress in Automotive and Component Companies Listed on the Indonesia Stock Exchange

Influence of Moderation Leverage on The Relationship Between Profitability and Firm Value

Influence of Return On Assets (ROA), Debt To Equity Ratio (DER), Current Ratio (CR), Debt To Asset Ratio (DAR) On Stock Returns In Food And Beverage Sector Manufacturing Companies Listed On The Indonesia Stock Exchange For The Period 2018 - 2022

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