Determination of Financial Performance on Prediction Financial Distress

Abstract

Aims: This study aims to empirically test ieffect of Current Ratio (CR), Debt to Equity Ratio (DER), Total Assets Turnover (TATO) and Return on Assets (ROA) on Financial Distress using the Altman Z-Score method. This analysis uses independent variables, there are CR, DER, TATO and ROA with dependent variable is Financial Distress (FD). Study Design: Design study is quantitative research and using statistical analysis. Place and duration of Study: The research population and sample used is a public company iin the property and real estate sub sector on the Indonesia Stock Exchange for the 2016-2020 period which was taken through the iwebsite www.idx.co.id Methodology: iThe sample was conducted using purposive sampling method, amount 38 companies. The statistical method used is imultiple linear regression analysis with it test hypothesis testing. Result: iThe results of this study indicate that the total asset on turn over ratio and return on asset have a positive, current ratio has a negative effect on financial distress and significant effect and debt equit ratio has no effect on Financial distress (FD). Contribution: This study contribute for Investors can find out information about the company's financial condition as a consideration in making investment decisions and bankruptcy theory analysis helps companies to be better prepared and more quickly detect potential financial difficulties that they may face. In this way, a solution can be found immediately.