Financial Ratios on the Bankruptcy Rates of with Profitability as Moderating Variables on JII70

Abstract

The study aims to find out how many companies are bankrupt and how liquidity and solvency can affect the level of bankruptcy in business entities and want to know how profitability can moderate liquidity and solvency on the level of bankruptcy. There are 23 Companies registered on JII70 as research subjects were selected by purposive sampling and analyzed using panel data and MRA. This study findings that most of the company joined in JII70 between 2010 and 2021 were in health conditions. There were at least 13 healthy companies from a total sample of 23 companies. For category of healthy and gray area 6 companies, and 4 companies are in a healthy condition, gray area, and bankrupt. While there are no companies that are in a gray area and go bankrupt condition. DAR has a significant negative effect while CR has a significant positive effect on the bankruptcy rate. CR and DAR effect on the bankruptcy rate can be moderated by EPS.