PENGARUH LIKUIDITAS, LEVARAGE DAN PROFITABILITAS TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN MAKANAN DAN MINUMAN DI BURSA EFEK INDONESIA

Abstract

This study aims to test and analyse the effect of liquidity, leverage and profitability on financial distress. Financial distress is used to predict financial difficulties in a company. Financial distress in this study is measured using the Altman Z-Score method. The company's financial difficulties can be known by calculating financial ratios. The financial ratios used in this study are liquidity, leverage and profitability. Liquidity in this study is measured by calculating the current ratio, leverage is measured by calculating the debt to equity ratio, and profitability is measured by calculating the return on assets. In this study, the approach uses quantitative. The population in this study amounted to 32 companies and for the research sample were 19 food and beverage companies listed on the Indonesia Stock Exchange, which were selected using purposive sampling method for the 2019-2020 period. The analysis method used in this research is multiple linear regression. Based on the test results, it is concluded that liquidity has no effect on financial distress while leverage and profitability affect financial distress.