The Effect of Financial Ratio on Financial Distress in Non-Financial Companies Listed on IDX

Dublin Core

Title

The Effect of Financial Ratio on Financial Distress in Non-Financial Companies Listed on IDX

Creator

Zunairoh, Liliana Inggrit Wijaya, Deddy Marciano, Marwin Antonius Rejeki Silalahi, Della Alicia Lesmana

Proceedings Item Type Metadata

meta_title

The Effect of Financial Ratio on Financial Distress in Non-Financial Companies Listed on IDX

Abstract/Description

The purpose of this study is to analyse variables that affect financial distress in non-financial companies listed on Indonesia Stock Exchange (IDX) for the 2018-2022 period. Independent variables used in this research are liquidity ratio, profitability ratio, leverage, and activity ratio. There are also several control variables such as sales growth and firm size, and the pandemic as a dummy variable. The dependent variable used in this research is financial distress which will be measured by the interest coverage ratio. This research uses a quantitative approach with a logistic regression model. The number of samples that meet the characteristics are 324 companies on the Indonesia Stock Exchange during the 2018-2022 period. The research results show that the current ratio, debt to equity, return on assets, and firm size have a significant effect on financial distress. Meanwhile, the variables of total asset turnover, sales growth, and pandemic do not effect on financial distress.

publication_date

2025/06/15

pdf_url

https://insyma.org/proceedings/files/articles/Zunairoh_Zunairoh.pdf

abstract_html_url

https://insyma.org/proceedings/items/show/410

keywords

Financial distress, Liquidity ratio, Profitability ratio, Leverage, Activity ratio.

firstpage

605

lastpage

610

issn

3047-857X

conference

Proceedings of the International Symposium on Management (INSYMA)

Volume

22

publisher_name

Fakultas Bisnis dan Ekonomika, Universitas Surabaya

Author #1

Zunairoh

Author #2

Liliana Inggrit Wijaya*

Author #3

Deddy Marciano

Author #4

Marwin Antonius Rejeki Silalahi

Author #5

Della Alicia Lesmana

no article

99

authors

Zunairoh, Liliana Inggrit Wijaya*, Deddy Marciano, Marwin Antonius Rejeki Silalahi, Della Alicia Lesmana

Files

Zunairoh_Zunairoh.pdf

Citation

Zunairoh, Liliana Inggrit Wijaya, Deddy Marciano, Marwin Antonius Rejeki Silalahi, Della Alicia Lesmana, “The Effect of Financial Ratio on Financial Distress in Non-Financial Companies Listed on IDX,” Proceedings of the International Symposium on Management (INSYMA), accessed July 1, 2025, https://insyma.org/proceedings/items/show/410.

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