Abstract
This study aims to analyze the effect of leverage, liquidity, and profitability on financial difficulties. The sample used is the retail sub-sector companies listed on the Indonesia Stock Exchange for 2018–2020. The sample used the purposive sampling method and obtained as many as 13 companies from a total observation of 26 companies. SPSS (Statistical Program for Social Science) data processing application software was used to test hypotheses using a multiple linear regression analysis model. The results showed that leverage had a positive effect on financial difficulties. Liquidity has a negative effect on financial difficulties. Profitability has a negative effect on financial difficulties. This research can be considered in making investment decisions by assessing each financial ratio and other information for accuracy in investing funds and getting the desired return. Companies need to maintain leverage ratios at a reasonable level and not too high, maintain liquidity ratios, and keep their activities at a high enough level to avoid financial difficulties and increase their ability to generate profits.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
