THE EFFECT OF PROFITABILITY, LEVERAGE, LIQUIDITY AND SALES GROWTH ON FINANCIAL DISTRESS (Empirical Study on Retail Companies listed on the Indonesia Stock Exchange in 2017-2020)

Abstract

The aim of this study was to find the effect of profitability, leverage, liquidity, and sales growth on the financial distress of retail companies listed on the Indonesia Stock Exchange from 2017 to 2020. The method of this study was quantitative by performing multiple linear regressions between profitability variables, leverage, liquidity and sales growth on financial distress. Purposive sampling was used todetermine the samples of this study. The results showed that profitability variables, leverage and liquidity affect the financial distress, while sales growth has not effect. The significance value (Sig.) of profitability, leverage, liquidity indicates 0.00 so that it affected the dependent value (financial distress).