The Role of Profitability in Moderating the Relationship Between Liquidity and Leverage on Financial Distress in Indonesian

Proceeding ISETH (International Summit on Science, Technology, and Humanity)
2025: Proceeding ISETH (International Summit on Science, Technology, and Humanity)

The purpose of this study is to determine the effect of liquidity and leverage on financial distress, with profitability as a moderating variable. This research uses a quantitative descriptive research approach, and the panel data analysis method uses Eviews 10. The research population is all delisted companies listed on the Indonesia Stock Exchange in the period 2010-2020. The sample was determined based on the purposive sampling method, resulting in a sample of 30 companies. The results showed that liquidity partially not affected financial distress, leverage affected financial distress, profitability was not able to moderate the effect of liquidity on financial distress, and profitability strengthens the effect of leverage on financial distress.