THE INFLUENCE OF PROFITABILITY, LIQUIDITY AND LEVERAGE ON FINANCIAL DISTRESS

Abstract

The aim of this research is to analyze and detect empirical evidence regarding the influence of profitability, liquidity and leverage on financial distress simultaneously and partially in manufacturing companies listed on the Indonesia Stock Exchange for the 2020-2022 period. This type of research uses quantitative. In this research there are 3 independent variables, namely profitability (ROA), liquidity (CR), leverage (DAR) and the dependent variable, namely financial distress (ICR). The population uses all 709 manufacturing companies listed on the Indonesia Stock Exchange for the 2020-2022 period, sourced from idx.co.id. The sample was determined using a purposive sampling technique to obtain 25 companies. The analysis method using logistic regression states that profitability, liquidity have a negative effect on financial distress and leverage has a positive effect on financial distress.