The Influence of Liquidity, Profitability, Leverage and Operating Cash Flows in Predicting Financial Distress in Manufacturing Companies in the Consumption Goods Industry Sector in Indonesia Stock Exchange

Abstract

The research objectives are to know the effect of liquidity, profitability, leverage, and operating cash flow together on the financial distress, and to find out the effect of the partial liquidity, profitability, leverage, and operating cash flow on the financial distress. This research uses method associative research. There are five variables used, is there liquidity, profitability, leverage, operating cash flow, and financial distress. Samples this research were are as many as 15 companies selected by purposive sampling. Secondary data is needed as a basis for analysis, while the data collection technique is as documentation. The analysis technique used is Multiple Linear Regression. The analysis shows 1) There is a significant effect of liquidity, profitability, leverage, and operating cash flow together on the financial distress in manufacturing companies in the goods industry sector listed on the Indonesian exchange 2) Thera is a significant effect of liquidity, profitability, and leverage. whereas operating cash flow have a partially insignificant effect.