The Influence of Financial Ratios on Financial Distress in Companies in the Various Industrial Sectors
Abstrak
This study aims to determine the effect of financial ratios on financial distress. The dependent variable is financial distress, while the independent variables are profitability, leverage, sales growth, and operating capacity. The study population consists of companies miscellaneous industrial sector listed on the IDX in 2022-2024. The sample selection used a purposive sampling technique, with 29 companies meeting the established criteria. The research method used is multiple linear regression analysis. Based on the research results, profitability has a positive effect on financial distress, leverage has a negative effect on financial distress, sales growth and operating capacity have no effect on financial distress.The limitations in this research are the limitations of the research object of manufacturing companies which only focus on miscellaneous industrial sectorlisted on the IDX in 2022-2024.
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