PREDICTION OF FINANCIAL DISTRESS IN MANUFACTURING COMPANIES ON THE INDONESIA STOCK EXCHANGE DURING THE PANDEMIC

Abstract

This study aims to determine the effect of several financial ratios consisting of liquidity ratios, profitability and leverage in predicting financial distress in manufacturing companies on the Indonesia Stock Exchange in 2018. The sampling technique was carried out using purposive sampling with criteria 1 for healthy companies and 0 for companies experiencing financial distress are measured using operating profit before taxes and interest. The results of the research using logistic regression show that financial ratios have an influence on predicting financial distress, shown in the current ratio which has a positive effect on financial distress with a beta value of 0.710, return on assets has a positive effect on financial distress with a beta value of 202.876 and the debt ratio has a positive effect on financial distress. with a beta value of 2.321.