PENGARUH PROFITABILITAS, LIKUIDITAS, LEVERAGE DAN ARUS KAS OPERASI TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI TAHUN 2021

The research problem is that many companies have experienced a decline in profits and losses which, if not addressed immediately, can result in financial distress to bankruptcy which is detrimental to many parties. The aim of this research is to examine the effect of profitability, liquidity, leverage and operating cash flow on financial distress in manufacturing companies listed on the IDX in 2021.
The research population is 214 companies. Using the purposive sampling method, a sample of 165 companies was obtained. The data analysis technique uses logistic regression analysis with the SPSS 25 test tool.
The test results show that partially profitability has a negative effect on financial distress, liquidity has a negative effect on financial distress, leverage has no effect on financial distress and operating cash flow has a negative effect on financial distress. Simultaneously profitability, liquidity, leverage and operating cash flow affect financial distress.
The research results are in line with Purwaningsih & Safitri (2022) but not in line with Fatimah et al., (2019). The results of the study support the signal theory, where the level of profitability, liquidity, leverage and operating cash flow will provide positive or negative signals for external parties in decision making.