THE EFFECT OF PROFITABILITY, LIQUIDITY, LEVERAGE, ACTIVITY, AND OPERATING CASH FLOW ON FINANCIAL DISTRESS IN CONSUMER SERVICES SUB-SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE PERIOD 2018-2022
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Abstract
This study aims to determine the effect of Return on Asset (ROA), Current Ratio (CR), Debt to Asset Ratio (DAR), Total Asset Turnover (TATO) and Cash Flow to Sales on Financial Distress in Consumer Services Sub-Sector Companies Listed on the Indonesia Stock Exchange for the 2018-2022 period. The object of this study is companies listed on the Indonesia Stock Exchange for the period 2018 to 2022. The population in this study was 50 companies. The sampling technique used was the purposive sampling method and a sample of 22 companies was obtained. The data analysis technique used was multiple linear regression analysis using Smart PLS 4.0 because the research data was not normally distributed. The results of this study indicate that the Current Ratio (CR) variable affects Financial Distress. Meanwhile, the variables Return on Asset (ROA), Debt to Asset Ratio (DAR), Total Asset Turnover (TATO) and Cash Flow to Sales do not affect Financial Distress in the consumer services sub-sector listed on the Indonesia Stock Exchange for the 2018-2022 period.
Penelitian ini bertujuan untuk mengetahui pengaruh Return on Asset (ROA), Current Ratio (CR), Debt to Asset Ratio (DAR), Total Asset Turn Over (TATO) dan Cash Flow to Sales Terhadap Financial Distress Pada Perusahaan Jasa Sub-Ektor Jasa Konsumen Yang Terdaftar di Bursa Efek Indonesia Periode 2018-2022. Objek penelitian ini adalah perusahaan yang terdaftar di Bursa Efek Indonesia periode tahun 2018 sampai dengan 2022. Populasi dalam penelitian ini adalah 50 perusahaan. Teknik pengambilan sampel yang digunakan adalah metode purposive sampling dan diperoleh sampel sebanyak 22 perusahaan. Teknik analisis data yang digunakan adalah analisis regresi linear berganda dengan menggunakan Smart PLS 4.0 yang dikarenakan data penelitian tidak berdistribusi normal. Hasil dari penelitian ini menunjukkan bahwa variabel Current Ratio (CR) berpengaruh terhadap Financial Distress. Sedangkan variabel Return on Asset (ROA), Debt to Asset Ratio (DAR), Total Asset Turn Over (TATO) dan Cash Flow to Sales tidak berpengaruh terhadap Financial Distress pada Sub-sektor Jasa Konsumen Yang Terdaftar di Bursa Efek Indonesia Periode 2018-2022.
References
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Pertiwi, DA (2018). Influence Ratio Finance, Growth, Company Size and Inflation Against Financial Distress in the Mining Sector Listed on the Indonesia Stock Exchange (BEI) for the 2012 - 2016 Period. 6 (3), 359–366.
Platt, H.D., & Platt, M.B. (2006). Understanding Differences Between Financial Distress and Bankruptcy. Review of Applied Economics, 2 (2), 141–157. http://ageconsearch.umn.edu
Qori’atuzzuhro, D. (2023). Influence Ratio Finance (Liquidity, Profitability, Solvency, and Activity) in Predicting Financial Distress Conditions (Empirical Study of Cigarette Companies Listed on the IDX 2017-2021) [KIAI HAJI ACHMAD SIDDIQ JEMBER STATE ISLAMIC UNIVERSITY]. http://digilib.uinkhas.ac.id/21996/1/SKRIPSI%20E20193097%20DEWI%20QORI%E2%80%99ATUZZUHRO.pdf
Rahma, A. (2020). Analysis Influence Profitability, Leverage, and Liquidity Against Financial Distress. 3 (3). http://openjournal.unpam.ac.id/index.php/JABI
Rusli, D., & Dumaris , TB (2020). Influence Working Capital Management Against Financial Distress with Company Size as Variable Control in Mining Sector Companies. Journal of Accounting and Management, 17 (02). www.investasi.kontan.co.id
Simanjuntak, C., Titik K, Dr. F., & Aminah, W. (2017). The Influence of Financial Ratios on Financial Distress (Study of Transportation Companies Listed on the Indonesian Stock Exchange for the 2011-2015 Period). 4 (2).
Simanullang, RGI (2021). The Influence of Liquidity, Profitability and Activity on Financial Distress in Manufacturing Companies in the Consumer Goods Industry Sector Listed on the Indonesian Stock Exchange in 2016-2019.
Sucipto, AW, & Muazaroh. (2016). The performance of financial ratios to predict financial distress conditions in service companies on the Indonesia Stock Exchange for the 2009-2014 period. 6 (1). https://doi.org/10.14414/jbb.v6i1
Sudiarsa, K. (2022). Analysis of the Fulmer Model, Ohlson Model and Foster Model in Predicting Financial Distress During the Pandemic. 1–11.
Sugiyono , Prof. Dr. (2013). Research methods Quantitative, Qualitative, and RD (19th ed.). Alphabeta, CV.
Sulastri, E., & Zannati, R. (2018). Prediction of financial distress in measuring the performance of manufacturing companies. Journal of Strategic Management and Business Applications, 1 (1), 27–36. https://ejournal.imperiuminstitute.org/index.php/JMSAB
Sutra, FM, & Mais, RG (2019). Factors Influencing Financial Distress Using the Altman Z-Score Approach in Mining Companies Listed on the Indonesian Stock Exchange 2015-2017. Journal of Accounting and Management, 16 (1). https://doi.org/10.36406/jam.v16i01.267
Syaharman, M., & Si. (2021). Financial Report Analysis as a Basis for Assessing Company Performance at PT. Narasindo Mitra Perdana. In Ganesha Medan Juripol Polytechnic Institution Journal (Vol. 4).
Thoyib, M., Firmansyah, Amri, D., Wahyudi, R., & Melin MA (2018). The Influence of Current Ratio, Debt To Asset Ratio, Debt To Equity Ratio and Total Asset Turnover on Return On Assets in Property and Real Estate Companies on the Indonesian Stock Exchange. Journal of Accountancy, 4 (2), 10–23.
Tutliha, YS, & Rahayu, M. (2019). The Influence of Intangible Assets, Operating Cash Flow and Leverage on Financial Distress. IKRAITH-ECONOMICS Journal, 2 (1), 95–103. www.sahamok.com
Wibowo, B.T. (2020). Financial Report Analysis to Measure PT's Financial Performance. Intan Segara Semarang in the Covid-19 Pandemic. STIE Anindyaguna Journal of Economics and Business, 2 (2), 118–130.
Wulandari, EW, & Jaeni. (2021). Factors That Influence Financial Distress. Batanghari University Jambi Scientific Journal, 21 (2), 734. https://doi.org/10.33087/jiubj.v21i2.1495
Yudhistira, H. (2019). The Effect of Leverage and Profitability on Financial Distress (In Manufacturing Companies Listed on the IDX). 7 (2).
Yuriani, Merry, Jennie, Natashia, Ikhsan, M., & Rahmi, NU (2020). The Influence of Ownership Structure, Liquidity, Leverage and Activities (TATO) on the Financial Distress of Consumer Goods Industry Companies on the Indonesian Stock Exchange. COSTING: Journal of Economics, Business and Accounting, 4 (1), 208–218.
Andrianti, Abbas, DSA, & Hakim, MZH (2021). Proceedings of the 2021 National Seminar on Economics and Business. https://doi.org/10.32528/psneb.v0i0.5215
Ardian, AV, Andini, R., & Raharjo, K. (2017). The Influence of Liquidity Ratios, Leverage Ratios, Activity Ratios and Profitability Ratios on Financial Distress . 3 (3), i–15.
Asfali, I. (2019). The Influence of Profitability, Liquidity, Leverage, Activity, Sales Growth on Financial Distress of Chemical Companies . 20 (2), 56–66.
Bachtiar, A., & Handayani, N. (2020). The Influence of Profitability, Leverage, Capital Intensity, and Operating Cash Flow on Financial Distress Nur Handayani Indonesian College of Economics (STIESIA) Surabaya. Journal of Accounting Science and Research , 11 (1), 1–19.
Bachtiar, A., & Handayani, N. (2022). The Influence of Profitability, Leverage, Capital Intensity, and Operating Cash Flow on Financial Distress Nur Handayani Indonesian College of Economics (STIESIA) Surabaya . 11 (1).
Brigham, E.F., & Houston, J.F. (2021). Fundamentals of financial management, 16th, Cengage Learning
Carolina, V., Marpaung, EI, & Pratama, D. (2017). Financial Ratio Analysis to Predict Financial Distress Conditions (Empirical Study of Manufacturing Companies Listed on the Indonesian Stock Exchange for the 2014-2015 Period) . 9 (2), 137–145.
Dewi, NLPA, Endiana , IDM, & Arizona, IPE (2019). Influence Ratio Liquidity, Leverage Ratio and Ratio Profitability Against Financial Distress in Manufacturing Companies. Vol. 1 No. 1.
Dewi, S. (2022). Influence of Financial Performance To Financial Distress Conditions During the Covid-19 Pandemic in Listed Transportation Companies On the Indonesian Stock Exchange (BEI).
Fajarsari, H., & Martini. (2020). Financial Distress Analysis with Calculation of the Altman Model (Z-Score) for Hotel, Restaurant and Tourism Sub-Sector Companies during Covid-19 pandemic. Ilman Journal: Journal of Management Science, 10 (2), 49–57. https://journals.stimsukmamedan.ac.id/index.php/ilman
Halim, I. (2021). Financial Report Analysis .
Hanifah, OE, & Purwanto, A. (2013). Influence Corporate Governance Structure and Financial Indicators Against Financial Distress Conditions. DIPONEGORO JOURNAL OF ACCOUNTING, 2 (2). http://ejournal-s1.undip.ac.id/index.php/accounting
Hapsari, EI (2012). Journal of Management Dynamics. JDM , 3 (2), 101–109. http://journal.unnes.ac.id/nju/index.php/jdm
Herawati, H. (2019). The Importance of Financial Reports for Assessing Company Financial Performance. Unihaz Accounting Journal , 2 (1), 16–25. https://doi.org/https://doi.org/10.32663/jaz.v2i1.806
Hidayat, S.E. , M.Dr. WW (2018). Basics of Financial Report Analysis (F. Fabri, Ed.). Uwais Indonesian inspiration.
Indriani, E., & Mildawati, T. (2019). The Influence of Profitability, Activity, Liquidity, Leverage and Cash Flow on Financial Distress in Telecommunication Companies. Journal of Accounting Science and Research, 8 (4), 1–21. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/view/2392
Jie, L., & Pradana, BL (2021). The Influence of Debt to Asset Ratio, Return on Assets, Total Asset Turnover and Current Ratio on Profit Growth of Manufacturing Companies in the Consumer Goods Industry Sector Listed in BEI for the 2016 – 2019 Period. Journal of Accounting Development, 8 (1), 34–50. https://doi.org/10.52859/jba.v8i1.135
Kartika, R., & Hasanudin. (2019). Analysis of the Influence of Liquidity, Leverage, Activity and Profitability on Financial Distress in Public Companies in the Infrastructure, Utilities and Transportation Sector for the 2011-2015 Period. Journal of Management Science, 15 (1), 1–16. https://doi.org/10.47313/oikonomia.v15i1.640
Kristanti, FT (2019). Theory and its development in the Indonesian context (1st ed.). Media Intelligence - Malang.
Maith, H. A. (2013). Analysis of Financial Reports in Measuring Financial Performance at PT. Hanjaya Mandala Sampoerna Tbk. Emba Journal, 1 (3), 603–721. https://doi.org/https://doi.org/10.35794/emba.1.3.2013.2130
Masruroh, B. (2020). Effect of Net Profit and Operating Cash Flow to Prediction of Financial Distress in Sharia Commercial Banks in Indonesia for the 2014-2018 Period. http://etheses.iainponorogo.ac.id/8993/
Mondayri, S., & Tatan Jaka Tresnajaya, R. (2022). Analysis The Influence of Good Corporate Governance, Intellectual Capital, and Operating Cash Flow Against Financial Distress. My Journal, 2 (1), 24–43. https://doi.org/10.54957/jurnalku.v2i1.132
Nukmaningtyas, F. (2018). Use Ratio Profitability, Liquidity, Leverage and Cash Flow for Predicting Financial Distress (Study of Companies in Various Industrial Sectors Listed on the Indonesian Stock Exchange for the 2013-2016 Period). Journal Administration Business (JAB), 61 (2), i –118. http://repository.ub.ac.id/id/eprint/162603
Paisal, Muh. PY (2021). Influence Liquidity, Profitability, and Leverage Against Financial Distress [STIE STAN Indonesia Mandiri]. https://epub.imandiri.id/repository/docs/TaScrip/Scrip(3).pdf
Pertiwi, DA (2018). Influence Ratio Finance, Growth, Company Size and Inflation Against Financial Distress in the Mining Sector Listed on the Indonesia Stock Exchange (BEI) for the 2012 - 2016 Period. 6 (3), 359–366.
Platt, H.D., & Platt, M.B. (2006). Understanding Differences Between Financial Distress and Bankruptcy. Review of Applied Economics, 2 (2), 141–157. http://ageconsearch.umn.edu
Qori’atuzzuhro, D. (2023). Influence Ratio Finance (Liquidity, Profitability, Solvency, and Activity) in Predicting Financial Distress Conditions (Empirical Study of Cigarette Companies Listed on the IDX 2017-2021) [KIAI HAJI ACHMAD SIDDIQ JEMBER STATE ISLAMIC UNIVERSITY]. http://digilib.uinkhas.ac.id/21996/1/SKRIPSI%20E20193097%20DEWI%20QORI%E2%80%99ATUZZUHRO.pdf
Rahma, A. (2020). Analysis Influence Profitability, Leverage, and Liquidity Against Financial Distress. 3 (3). http://openjournal.unpam.ac.id/index.php/JABI
Rusli, D., & Dumaris , TB (2020). Influence Working Capital Management Against Financial Distress with Company Size as Variable Control in Mining Sector Companies. Journal of Accounting and Management, 17 (02). www.investasi.kontan.co.id
Simanjuntak, C., Titik K, Dr. F., & Aminah, W. (2017). The Influence of Financial Ratios on Financial Distress (Study of Transportation Companies Listed on the Indonesian Stock Exchange for the 2011-2015 Period). 4 (2).
Simanullang, RGI (2021). The Influence of Liquidity, Profitability and Activity on Financial Distress in Manufacturing Companies in the Consumer Goods Industry Sector Listed on the Indonesian Stock Exchange in 2016-2019.
Sucipto, AW, & Muazaroh. (2016). The performance of financial ratios to predict financial distress conditions in service companies on the Indonesia Stock Exchange for the 2009-2014 period. 6 (1). https://doi.org/10.14414/jbb.v6i1
Sudiarsa, K. (2022). Analysis of the Fulmer Model, Ohlson Model and Foster Model in Predicting Financial Distress During the Pandemic. 1–11.
Sugiyono , Prof. Dr. (2013). Research methods Quantitative, Qualitative, and RD (19th ed.). Alphabeta, CV.
Sulastri, E., & Zannati, R. (2018). Prediction of financial distress in measuring the performance of manufacturing companies. Journal of Strategic Management and Business Applications, 1 (1), 27–36. https://ejournal.imperiuminstitute.org/index.php/JMSAB
Sutra, FM, & Mais, RG (2019). Factors Influencing Financial Distress Using the Altman Z-Score Approach in Mining Companies Listed on the Indonesian Stock Exchange 2015-2017. Journal of Accounting and Management, 16 (1). https://doi.org/10.36406/jam.v16i01.267
Syaharman, M., & Si. (2021). Financial Report Analysis as a Basis for Assessing Company Performance at PT. Narasindo Mitra Perdana. In Ganesha Medan Juripol Polytechnic Institution Journal (Vol. 4).
Thoyib, M., Firmansyah, Amri, D., Wahyudi, R., & Melin MA (2018). The Influence of Current Ratio, Debt To Asset Ratio, Debt To Equity Ratio and Total Asset Turnover on Return On Assets in Property and Real Estate Companies on the Indonesian Stock Exchange. Journal of Accountancy, 4 (2), 10–23.
Tutliha, YS, & Rahayu, M. (2019). The Influence of Intangible Assets, Operating Cash Flow and Leverage on Financial Distress. IKRAITH-ECONOMICS Journal, 2 (1), 95–103. www.sahamok.com
Wibowo, B.T. (2020). Financial Report Analysis to Measure PT's Financial Performance. Intan Segara Semarang in the Covid-19 Pandemic. STIE Anindyaguna Journal of Economics and Business, 2 (2), 118–130.
Wulandari, EW, & Jaeni. (2021). Factors That Influence Financial Distress. Batanghari University Jambi Scientific Journal, 21 (2), 734. https://doi.org/10.33087/jiubj.v21i2.1495
Yudhistira, H. (2019). The Effect of Leverage and Profitability on Financial Distress (In Manufacturing Companies Listed on the IDX). 7 (2).
Yuriani, Merry, Jennie, Natashia, Ikhsan, M., & Rahmi, NU (2020). The Influence of Ownership Structure, Liquidity, Leverage and Activities (TATO) on the Financial Distress of Consumer Goods Industry Companies on the Indonesian Stock Exchange. COSTING: Journal of Economics, Business and Accounting, 4 (1), 208–218.
Published
2024-09-30
How to Cite
HADI, Syukri; KIMBERLY, Agustini; FITRIE, Souvya.
THE EFFECT OF PROFITABILITY, LIQUIDITY, LEVERAGE, ACTIVITY, AND OPERATING CASH FLOW ON FINANCIAL DISTRESS IN CONSUMER SERVICES SUB-SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE PERIOD 2018-2022.
Procuratio : Jurnal Ilmiah Manajemen, [S.l.], v. 12, n. 3, p. 268-282, sep. 2024.
ISSN 2580-3743.
Available at: <https://ejournal.pelitaindonesia.ac.id/ojs32/index.php/PROCURATIO/article/view/4483>. Date accessed: 16 mar. 2025.
doi: https://doi.org/10.35145/procuratio.v12i3.4483.
Section
Articles
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