Abstract

The development of the flight companies that continues to increase has also made the level of competition increasingly fierce. There is news that several flight companies are experiencing financial distress conditions, this makes awareness of theimportance of researching whatfinancial ratios have an effect on triggering financialdistress conditions on the flight companies. This study aims to examine the effect of financial ratios consisting of profitability, liquidity and Leverage ratios on financialdistress in Flight Companies in Indonesia. This research is classified into quantitative research with a sampling method that is non-probability sampling. The sample in this study is an flight company listed on the Indonesia Stock Exchange (IDX). The method of analysis in this research is panel data regression test, and the hypothesized relationship in the proposed theoretical model. The results of this study have proven that all of the financial ratio variables tested, namely the ratio of profitability, liquidity and Leverage partially have a significant effect on the financial distress of flight companies.Keywords :Profitability; Liquidity; Leverage; Financial distress

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