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

Abstract

This study aims to measure the effect of leverage, current ratio, Operating expenses Operating income (OEOI), firm size, and sales growth on financial distress in Transportation Equipment Industry listed on the Indonesian stock exchange for the period 2018 to 2020.The uniqueness of this research is that it is a case study in a mature Transportation Equipment Industry company so that it examines in depth, detail, intensively, and thoroughly on variables, especially those related to financial distress.The analytical method used in this study is multiple regression analysis using the SPSS version 23. The results of this study provide an explanation of Leverage and Sales Growth partially having a negative effect, Current Assets, Operating expenses Operating income , and Firm Size. and a partial positive effect on financial distress. dependent financial distress can be explained by the independent variables (leverage, current ratio, OEOI, Firm size, and Sales growth) of 50.5 percent while 49.5 percent is influenced by other variables from this study.