Economit Journal
Vol 2 No 2 (2022): Economit Journal: Scientific Journal of Accountancy, Management and Finance: (May

Financial Ratio Analysis to Predict Financial Distress at PT. Perkebunan Nusantara IV (Persero) Medan

Febri Bahri (Faculty of Sosial Science, Universitas Pembangunan Panca Budi, Indonesia)
Rahima Br. Purba (Faculty of Sosial Science, Universitas Pembangunan Panca Budi, Indonesia)
Oktarini Khamilah (Faculty of Sosial Science, Universitas Pembangunan Panca Budi, Indonesia)



Article Info

Publish Date
31 May 2022

Abstract

This study is entitled "Financial Ratio Analysis to Predict Financial Distress Conditions at PT. Perkebunan Nusantara IV (Persero) Medan”. This study aims to analyze the ratio of leverage (Debt to equity ratio), liquidity (Current ratio) and profitability (Return on Assets) to predict financial distress at PT. Perkebunan Nusantara IV (Persero) Medan during the 2017-2019 period. This research was conducted using descriptive method with the employment of secondary data. This study also aims to determine the level of financial performance of SOEs (BUMN) based on the Decree of the Minister of State-Owned Enterprises No: KEP-100/MBU/2002 concerning the assessment of the financial health of SOEs. This study usedseveral ratio indicators, namely, Return on equity, Return on investment, Cash ratio,Collection period, Inventory turnover, Total assets turnover, and Total equity to total assets. Based on the results, PT. Perkebunan Nusantara IV (Persero) Medanobtained the health level of BB (Less Healthy). The results also showed that the leverage, liquidity and profitability ratio variables could predict financial distress at PT. Perkebunan Nusantara IV (Persero) Medan.

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Journal Info

Abbrev

economit

Publisher

Subject

Description

Economit Journal: Scientific Journal of Accountancy, Management and Finance is an international journal using a peer-reviewed process published in February, May, August and November by Britain International for Academic Research Publisher (BIAR-Publisher). Economit welcomes research papers in ...