Financial Distress Prediction in Subfrastructure, Utility and Transportation Sub Sector Service in Indonesia

Resa Meita Ary Putri(1), Hadi Paramu(2*), Intan Nurul Awwaliyah(3),

(1) University of Jember
(2) Universitas Jember
(3) Universitas Jember
(*) Corresponding Author

Abstract


The purpose of this study is to examine and analyze whether profitability ratios, liquidity ratios, solvency ratios, cash flow ratios, activity ratios, and cash positions affect the financial distress in service companies in infrastructure, utilities, and transportation sub-sectors in Indonesia. The number of samples of this study are 51 companies and research ranges from 2013-2018. Total observations in this study are 289 out of 306 observations, and the rest are outliers. The method of analysis is using logistic regression analysis. The result shows there are two independent variables ( Cash Flow from Operations to Total Assets and Cash to Current Liabilities ) that have a significant effect on financial distress, while four independent variables ( Return on Equity , Working Capital to Total Assets, Debt Assets Ratio , Sales to Current Assets ) have no significant effect on financial distress.

Keywords


financial distress; financial ratios; logistic regression; service companies

Full Text:

PDF


DOI: https://doi.org/10.24123/jmb.v19i2.451

Article Metrics

Abstract view : 0 times
PDF - 0 times

Refbacks

  • There are currently no refbacks.




Copyright (c) 2020 Resa Meita Ary Putri, Hadi Paramu, Intan Nurul Awwaliyah

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License. ISSN: 1412-3789. e-ISSN: 2477-1783.

Google Scholar Google ScholarGARUDA - Garba Rujukan Digital
 mabis statistics