THE EFFECT PROFITABILITY, LIQUIDITY, SOLVENCY COMPANY SIZE ON FINANCIAL DISTRESS MANUFACTURING INDUSTRY COMPANIES INDONESIA STOCK EXCHANGE 2020-2024

Maharani Diah Vinka Vinanda

Abstract


This research is conducted to examine how profitability, liquidity, solvency, and company size influence financial distress in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period, with a total of 200 companies selected as samples using purposive sampling techniques. The study applies a quantitative method and utilizes the SPSS version 20 for data analysis. The data are secondary in nature, sourced from the annual financial statements of the companies. Data collection was carried out through documentation, while the analysis was performed using logistic regression based on the Zmijewski model. The findings indicate that profitability has a significantly negative effect on financial distress, whereas liquidity and solvency show a significantly positive effect, and company size does not have a significant impact on financial distress. Therefore, the results confirm that financial ratios can serve as an effective early warning tool for identifying potential financial difficulties in manufacturing firms.


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