Pengaruh Laba dan Arus Kas terhadap Financial Distress

Abstract

Financial distress is a term that is not commonly heard. In fact, financial distress is happening all around us. Losses, inability to pay obligations, bankruptcy and default are included in the stages of financial distress. The term that is more familiar to the public is financial crisis. This research examines whether profits and cash flow influence the occurrence of financial distress using the Zmijewski method which is still rarely used. Is it true that if profits and cash flow decrease or are negative then the company is considered to be experiencing financial distress? Using the multiple regression analysis method with the help of the SPSS application, and secondary data from www.idx.co.id, the author carried out data processing to determine the effect of profits and cash flow on the financial distress of retail companies listed on the Indonesian Stock Exchange in 2020-2022. The analysis was carried out by testing assumptions and then testing hypotheses. This research results in the conclusion that profit has no effect on financial distress. Meanwhile, cash flow influences financial distress.