Jurnal Riset Bisnis dan Manajemen
Vol. 15 No. 2 (2022): August Edition

THE EFFECT OF FINANCIAL RATIOS IN PREDICTING FINANCIAL DISTRESS IN MANUFACTURING COMPANIES

Risa Arifiana (Universitas Hayam Wuruk Perbanas)
Sholikha Oktavi Khalifaturofi'ah (Universitas Hayam Wuruk Perbanas)

Article Info

Publish Date
20 Aug 2022

Abstract

The purpose of this study is to analyze the effect of financial ratios in predicting financial distress in manufacturing companies. The sampling technique used in this study is purposive sampling. The research sample is 87 manufacturing companies listed on the Indonesia Stock Exchange (BEI) for the 2016-2020 period. The data analysis technique is logistic regression. The results show that profitability and activity ratio have a negative and significant effect on predicting financial distress. In addition, the liquidity and leverage ratio have no significant effect on predicting Financial Distress. The implication of this study is manufacturing companies have to increase profitability and activity in order to avoid financial distress.

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Journal Info
Jurnal Riset Bisnis dan Manajemen
Website

Abbrev

jrbm

Publisher

Universitas Pasundan

Subject

Economics, Econometrics & Finance

Description

The journal’s aim is to foster greater understanding of advancements in all areas of business and management by providing a platform to the scholars for disseminating their research works. The journal’s welcomes empirical and theoretical research papers and literature reviews from academicians, ...