Jurnal Ekonomi
Vol. 12 No. 3 (2023): Jurnal Ekonomi, 2023, September

PREDICTION OF FINANCIAL DISTRESS USING FINANCIAL RATIO IN TRANSPORTATION COMPANIES ON THE INDONESIAN STOCK EXCHANGE

Dwi Dewianawati (Universitas Mayjen Sungkono)
Erry Setiawan (Universitas Mayjen Sungkono)



Article Info

Publish Date
14 Jul 2023

Abstract

Financial Distress is avoided as much as possible by predicting the occurrence of Financial Distress earlier. One source of information is the possibility of Financial Distress conditions in a company can be seen from the company's financial statements through the calculation of financial ratios. The purpose of this study is to predict the occurrence of Financial Distress in transportation sector companies listed on the Indonesia Stock Exchange. The population of this study were all transportation companies listed on the Indonesia Stock Exchange for the 2017-2021 period, totalling 21 companies and from 21 companies, based on the criteria included as samples were 14 companies. Tests in this study use Logistic Regression to determine the predictive power of financial ratios.This study states that the ratios of Liquidity, Activity, Leverage and Growth are not able to significantly distinguish between Financial Distress while the Profitability ratio can negatively differentiate between Financial Distress.

Copyrights © 2023






Journal Info

Abbrev

Ekonomi

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi [p. ISSNĀ 2301-6280, e. ISSNĀ 2721-9879] is a peer-reviewed journal published Half times a year (June, and December) by SEAN Institute. Jurnal Ekonomi is intended to be the journal for publishing articles reporting the results of economics research. Jurnal Ekonomi invites manuscripts ...