Ayatika, Arini
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The effect of profitability, liquidity, leverage, and activity on financial distress at PT Waskita Karya (Persero) Tbk Ayatika, Arini; Suryaningprang, Andre; Herlinawati, Erna; Sudaryo, Yoyo; Supiyadi, Dedi
Insight Management Journal Vol. 4 No. 2 (2024): January
Publisher : Forum Kerjasama Pendidikan Tinggi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47065/imj.v4i2.314

Abstract

The aim of this study is to find out how profitability, liquidity, leverage, and activity have a partial and simultaneous effect on financial distress. To collect samples, the researchers used purposive sampling. This research uses secondary data from the triwulan financial report of PT Waskita Karya (Persero) Tbk for the period 2013-2023. The study uses a descriptive and verification approach that includes descriptive tests, classical assumption tests, double linear regression analysis, determination coefficient analysis, and hypothesis testing. The results of the determination factor tests show that profitability, liquidity, leverage, and operational influences 90.20% of financial distress, and 9.80% are influenced by other factors not considered in the study. It can be concluded from the hypothesis test that partially Profitability, Liquidity, and Activity have a positive and significant influence on Financial Distress, while Leverage has a negative and significant effect on Financial distress while simultaneously Profitability, liquidity, Leverage, and Aktivity have an influence upon Financial Distress. Researchers recommend using different research objects and larger samples, not just that for further research it is recommended to use measuring tools that project different financial distress such as using the Springate, Zmijewski, or Grover methods