The Influence Of Financial Indicators In Predicting The Financial Distress Of Manufacturing Companies
Keywords:
Financial Ratios, Financial Distress, Altman Z-ScoreAbstract
The purpose of this study was to examine financial indicator factors, namely financial ratios, namely liquidity ratios, profitability ratios, leverage ratios, activity ratios with interest rate proxies against financial distress. Financial Distress measurement uses the Altman Z-Score method. The test population in this study are manufacturing companies that are listed on the IDX and have negative profits for two years or more, are consistent in reporting financial statements ending December 31 for 2019-2021 and are reported using the rupiah currency. The selected data are 30 companies as research samples. The analysis carried out is multiple linear regression with SPSS version 25. The results of this study indicate that the financial ratios Current Ratio (CR), Return On Assets (ROA), Debt to Equity (DER), Total Asset Turnover (TATO) have a significant negative effect on financial distress.
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