PENGARUH KINERJA KEUANGAN TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN SUB SEKTOR OTOMOTIF DAN KOMPONEN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2021-2023

Abstract

This study aims to analyze the effect of financial performance, as measured by Return On Asset (ROA), Current Ratio (CR), and Debt to Asset Ratio (DAR), on Financial Distress in automotive and component sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2021-2023. The study uses a quantitative approach with multiple linear regression analysis, utilizing secondary data from annual financial reports. Analysis techniques include normality tests, t-tests, F-tests, and coefficient of determination (R²) tests, with Financial Distress measured using the Grover model. The results show that ROA has a significant effect on Financial Distress, while CR and DAR are not significant individually. Simultaneously, the three variables have a significant effect, explaining 78.8% of the variation in Financial Distress. These findings emphasize the importance of asset efficiency in maintaining financial stability in the competitive and capital-intensive automotive industry.