THE ROLE OF PROFITABILITY, LEVERAGE, AND LIQUIDITY IN EFFORTS TO MINIMIZE FINANCIAL DISTRESS

Abstract

The impact of the Covid-19 pandemic has made major changes to a country's economy. During the pandemic, many companies tried to survive so that the Covid-19 pandemic did not cause the company to go bankrupt. This research seeks to determine and analyze the influence of Profitability, Leverage and Liquidity ratios on the financial distress of manufacturing companies listed on the Indonesia Stock Exchange (BEI) for the 2020-2022 period. The type of research used is positivistic quantitative research. The type of data in this research is secondary data. The population in this research is manufacturing companies in the consumer goods industry sector, totaling 74 companies. The population of this research was 74 manufacturing companies in the consumer goods industry sector. Using purposive sampling techniques, 48 companies were obtained as research samples. The analysis used is multiple linear regression analysis. The research results found that the profitability and liquidity ratios had no effect on financial distress, the Leverage ratio had an effect on financial distress.