Financial Distress Perusahaan Sektor Pariwisata: Pengaruh Profitabilitas, Likuiditas dan Leverage

Abstract

This research aims to examine the influence of profitability, liquidity and leverage on the financial distress of tourism sector companies that go public in Indonesia in 2018-2021. Profitability is measured using return on assets. Liquidity is measured using the liquidity ratio (current ratio) and leverage is measured using the debt to equity ratio (debt to equity ratio). Financial distress is measured using the Altman Z score. The test used weighted least square regret (WLS), with the error term as a weight. The test results show that profitability and liquidity have a positive effect on the Z score (financial distress). Leverage has a negative effect on the value of financial distress. This research concludes that a company that has the ability to generate profits and the ability to meet its short-term needs is higher, the more the company will avoid financial difficulties. Companies that use a smaller proportion of debt compared to their equity will also be more likely to avoid financial difficulties.