PENGARUH CURRENT RATIO, TOTAL ASSET TURNOVER, DEBT TO EQUITY RATIO, DAN RETURN ON ASSET TERHADAP FINANCIAL DISTRESS (STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR SUB SEKTOR TEKSTIL DAN GARMEN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2019-2023)

Abstract

A corporation entering a stage of decline in its capacity to meet its short-term obligations is known as financial distress. Finding out if the current ratio, total asset turnover, debt to equity ratio, and return on assets have an impact on financial distress is the aim of the research. Companies in the subsector of textiles and apparel that are listed on the IDX from 2019 to 2023. 22 firms' worth of secondary data are used in this study. Purposive sampling was the method employed, and the sample size chosen comprised twelve companies. Multiple linear regression analysis is the analytical tool employed in this study. The study's findings indicate that while the Current Ratio has no discernible impact on financial distress, Debt To Equity Ratio has no discernible impact on financial distress, Return On Assets has no discernible impact on financial distress, Total Asset Turnover significantly positively affects financial distress.