The Influence Of Liquidity, Profitability, and Leverage on Financial Distress Prediction in Manufacturing Companies of The Food and Beverage Sub-Sector Listed on The Indonesia Stock Exchange (IDX)

Abstract

The objectives of this study were: 1) To analyze the effect of liquidity, profitability, and leverage on financial distress, 2) To analyze the effect of liquidity on financial distress, 3) To analyze the effect of profitability on financial distress, 4) To analyze the effect of leverage on financial distress in food and beverage subsector manufacturing companies listed on the Indonesia Stock Exchange (IDX). By using a sample of manufacturing companies in the food and beverage subsector listed on the Indonesia Stock Exchange and the research period 2020-2022, the results of this study indicate that in general there is an effect of liquidity, profitability, and leverage on financial distress. This study also indicates that liquidity and profitability have a negative effect on financial distress. Meanwhile, leverage has no effect on financial distress in food and beverage subsector manufacturing companies listed on the Indonesia Stock Exchange (IDX).

Keywords: liquidity, profitability, leverage, financial distress.