Abstract
The results show that, it is proven that the variable liquidity and interest rates have a negative effect on financial distress. Meanwhile, the variables of Profitability, Leverage and Company Size have a positive effect on financial distress. While the Economic Stimulus variable is known to be the relationship between all variables of Liquidity, Profitability, Leverage, Company Size and Interest Rate on variables to Financial Distress. This means that company leaders must take into account liquidity, profitability, leverage, company size and interest rates to avoid financial distress.
Highlights
A company can be categorized as experiencing financial distress if the company has a performance that shows negative net income
The variables of Profitability, Leverage and Company Size have a positive effect on financial distress
This means that company leaders must take into account liquidity, profitability, leverage, company size and interest rates to avoid financial distress
Summary
A company can be categorized as experiencing financial distress if the company has a performance that shows negative net income. Leverage ratio is a ratio that measures the ratio of funds provided by the owner of funds borrowed from creditor companies This ratio shows the company's ability to meet its financial obligations, both short and long term (Abdul:2013) in Makiwan (2018). Sedangkan menurut Sudaryo et al (2021), The results showed that (1) Financial Distress calculated by the Altman Zscore formula averaged 1,895, which means that the company is in a vulnerablecondition and is experiencing financial problems and must immediately handle propermanagement management. (3) Debt to Equity Ratio (DER) an average of 116.59%> 80% indicates alow company's ability to pay its long-term debt. (8) Current Ratio (CR), Debt to Equity Ratio (DER) and Net Profit Margin (NPM) have a significant effect on FinancialDistress Sedangkan menurut Sudaryo et al (2021), The results showed that (1) Financial Distress calculated by the Altman Zscore formula averaged 1,895, which means that the company is in a vulnerablecondition and is experiencing financial problems and must immediately handle propermanagement management. (2) Current Ratio (CR) an average of 117.63% 80% indicates alow company's ability to pay its long-term debt. (4) Net Profit Margin (NPM) anaverage of 15.37%
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