Journal of Industrial Engineering & Management Research (JIEMAR)
Vol. 3 No. 1 (2022): February 2022

The Impact Of Current Ratio And Gross Profit Margin Towards Financial Distress In Technology Sector Companies Listed In Indonesia Stock Exchange For Period 2016-2020

Ciptawan, Ciptawan (Unknown)
Frandjaja, Brian Owen (Unknown)



Article Info

Publish Date
05 Feb 2022

Abstract

The growth of the Indonesian economy has increased rivalry among technological companies. Due to the fact that Indonesia's economy is still in its development, firms cannot be guaranteed to survive. Financial ratios can be used to foresee a company's bankruptcy, which has a huge influence on its investors; further analysis and study are required to forecast future financial distress. Thus, the purpose of this study is to ascertain the effect of the current ratio and gross profit margin on financial distress. This study employs a quantitative method based on secondary data. Between 2016 and 2020, the population is Technology Industry Companies Listed on the Indonesian Stock Exchange. A purposive sampling technique is use to determine 35 samples. The findings of this study indicate that Current Ratio does not have significant impact on business financial distress, similar to how Gross Profit Margin does not have significant impact on firm financial distress. Finally, both the current ratio and gross profit margin have a simultaneous impact but not significant on a firm's financial distress. Keywords : Current Ratio, Gross Profit Margin, Financial Distress

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Journal Info

Abbrev

jiemar

Publisher

Subject

Humanities Economics, Econometrics & Finance Education Industrial & Manufacturing Engineering

Description

The aim of JIEMAR ( Journal of Industrial Engineering & Management Research is to publish theoretical and empirical articles that are aimed to contrast and extend existing theories, and build new theories that contribute to advance our understanding of phenomena related with industrial engineering ...