FINANCIAL RATIO ANALYSIS IN PREDICTING FINANCIAL CONDITIONS DISTRESS IN INDONESIA STOCK EXCHANGE

Financial distress is a condition where a company experiences financial difficulties, if these conditions cannot be overcome; it is possible that the company will experience bankruptcy. This research was conducted to reexamine some of the differences in the results of previous studies and models in identifying financial distress conditions, the phenomenon of delisting companies from the Indonesia Stock Exchange (IDX) and research objects, so researchers were interested in reexamining the effect of financial ratios on financial distress. The purpose of this research is to analyze the effect of liquidity ratios, profitability, financial leverage and operating cash flows on the condition of financial distress companies that listed on the Indonesia Stock Exchange. This research was conducted at companies listed on the Indonesia Stock Exchange (IDX) which provide annual financial report data by downloading on the official website of the Indonesia Stock Exchange (IDX) through the website www.idx.co.id. The type of data used in this research is Quantitative data is data in the form of numbers obtained from the Indonesia Stock Exchange such as the 2013-2017 financial statements. This study uses secondary data sources. The variables used in this study are liquidity ratios, profitability, financial leverage, and operating cash flows as independent variables and financial distress as dependent variable. Testing the hypothesis in this study uses logistic regression. Based on the results of logistic regression analysis with a significance level of 5%, the results of this study indicate that (1) the liquidity ratio measured by the current ratio (CR) has a negative effect on the condition of corporate financial distress listed on the Indonesia Stock Exchange; (2) profitability ratios measured by Return On Assets (ROA) negatively affect the condition of financial distress companies listed on the Indonesia Stock Exchange; (3) financial leverage ratio measured by Debt to Equity Ratio (DER) has a positive effect on the condition of corporate financial distress listed on the Indonesia Stock Exchange; (4) the ratio of operating cash flow has no effect on the condition of the company's financial distress listed on the Indonesia Stock Exchange