THE EFFECT OF LIQUIDITY, LEVERAGE, OPERATING CAPACITY AND FIRM SIZE ON FINANCIAL DISTRESS (Empirical Study on Transportation Subsector Companies Listed on the IDX for the 2017-2022 Period)

Abstract

This study aims to determine the effect of liquidity, leverage, operating capacity and firm size on financial distress (empirical study on transportation subsector companies listed on the IDX for the 2017-2022 period). The population in this study is transportation subsector companies listed on the IDX for the 2017-2022 period, totaling 42 companies. The sampling technique in this study used purposive sampling. This research uses secondary data in the form of annual financial statements. This study used multiple linear regression analysis method with IBM SPSS program version 25. The results of this study show that liquidity has a positive effect on the value of sig. 0.000, leverage negatively affects the value of sig. 0.000, operating capacity has a positive effect on the sig value. 0.000 and firm size have a positive effect on financial distress with a sig value. 0.000.