ANALYSIS OF THE EFFECT OF PROFIBILITY, LIQUIDITY, LEVERAGE, AND FIRM SIZE ON FINANCIAL DISTRESS IN MANUFACTURING COMPANIES LISTED ON THE IDX (INDONESIA STOCK EXCHANGE) IN THE PERIOD 2019-2023

Alda Risma Ariyanti¹, Agustiawan Baruno², Jajuk Suprijati³

Abstract

Financial distress is the decline stage of the company’s financial condition.The purpose of this research is to testa prediction of financial performace and firm size in the manufacturing companies listed in Indonesian Stock Exchange 2012-2016. The research method has been done by using quantitive method with thelogistic regression analysis technique and its also done by using the statistic instrument os SPSS 23,0 version. The result of this research shows that: Profitability ratio significantly predicts financial distress with a negative direction (regression coefficient -0.945; significance 0.010 < 0.05), meaning that higher profitability leads to a lower likelihood of financial distress. However, the liquidity ratio (coefficient -0.210; significance 0.638 > 0.05), leverage ratio (coefficient 3.061; significance 0.125 > 0.05), and firm size (coefficient 1.484; significance 0.064 > 0.05) were not found to be significant in predicting financial distress in this study