The effect of financial ratio on financial distress during the Covid-19 pandemic Case study of transportation sub sector companies listed on the Indonesia stock exchange period 2019–2020
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Published:
Jun 30, 2022
Keywords:
Current Asset Ratio, Debt to Asset Ratio, Financial Distress, Sales Growth, Total Asset Turnover
Section
Articles
Statistics Article
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Abstract
The purpose of this reserch is to determine and analyze the effect of the Current Ratio, Debt to Asset Ratio, Sales Growth and Total Asset Turnover simultaneously and partially on Financial Distress in the transportation sub-sector companies listed on the Indonesia Stock Exchange for the period of 2019-2020. The population of this study is the transportation sub-sector companies as many as 46 companies. The sampling method used purposive sampling, and the number of samples obtained are 33 companies. The type of the research is descriptive quantitative using logistic regression analysis method. The results show that the variables Current Ratio, Debt to Asset Ratio, Sales Growth, and Total Asset Turnover simultaneously affect Financial Distress in transportation sub-sector companies listed on the Indonesia Stock Exchange for the period of 2019-2020. Partially, Sales Growth have an effect, Current Ratio, Debt to Asset Ratio and Total Asset Turnover have no effect on Financial Distress in transportation sub-sector companies listed on the Indonesia Stock Exchange for period of 2019-2020.
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How to Cite
Fitri, W., Gultom, R., & Ginting, E. S. (2022). The effect of financial ratio on financial distress during the Covid-19 pandemic : Case study of transportation sub sector companies listed on the Indonesia stock exchange period 2019–2020. Indonesia Accounting Research Journal, 10(1), 26–32. Retrieved from https://journals.iarn.or.id/index.php/Accounting/article/view/4
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Sulastri, E., & Zannati, R. (2018). Prediksi financial distress dalam mengukur kinerja perusahaan manufaktur. Jurnal Manajemen Strategi Dan Aplikasi Bisnis, 1(1), 27–36.
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Zimon, G., & Tarighi, H. (2021). Effects of the COVID-19 global crisis on the working capital management policy: Evidence from Poland. Journal of Risk and Financial Management, 14(4), 169.
Batrancea, L. (2021). The nexus between financial performance and equilibrium: Empirical evidence on publicly traded companies from the global financial crisis up to the COVID-19 pandemic. Journal of Risk and Financial Management, 14(5), 218.
Bayu, D. J. (6 C.E.). Sektor Usaha Paling Terdampak Saat Pandemi-Corona. Katadata. Co. Id.
Dirman, A. (2020). Financial distress: the impacts of profitability, liquidity, leverage, firm size, and free cash flow. International Journal of Business, Economics and Law, 22(1), 17–25.
ENDRI, E., SARI, A. K., BUDIASIH, Y., YULIANTINI, T., & KASMIR, K. (2020). Determinants of profit growth in food and beverage companies in Indonesia. The Journal of Asian Finance, Economics and Business, 7(12), 739–748.
Gennaro, A. (2021). Insolvency risk and value maximization: A convergence between financial management and risk management. Risks, 9(6), 105.
Handriani, E., Ghozali, I., & Hersugodo, H. (2021). Corporate governance on financial distress: Evidence from Indonesia. Management Science Letters, 11(6), 1833–1844.
Idi, C. M., & Borolla, J. D. (2021). Analisis Financial Distress Menggunakan Metode Altman Z–Score pada PT. Golden Plantation Tbk. Periode 2014-2018. PUBLIC POLICY (Jurnal Aplikasi Kebijakan Publik & Bisnis), 2(1), 102–121.
Ilyas, M., Khan, A., Nadeem, M., & Suleman, M. T. (2021). Economic policy uncertainty, oil price shocks and corporate investment: evidence from the oil industry. Energy Economics, 97, 105193.
Lubis, N. H., & Patrisia, D. (2019). Pengaruh Activity Ratio, Leverage dan Firm Growth Terhadap Financial Distress (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di BEI Periode 2013-2017). Jurnal Kajian Manajemen Dan Wirausaha, 1(1), 173–182.
Mahmutaj, L. R., & Krasniqi, B. (2020). Innovation types and sales growth in small firms evidence from Kosovo. The South East European Journal of Economics and Business, 15(1), 27–43.
Mendolia, S., Stavrunova, O., & Yerokhin, O. (2021). Determinants of the community mobility during the COVID-19 epidemic: The role of government regulations and information. Journal of Economic Behavior & Organization, 184, 199–231.
Molloy, J., Schatzmann, T., Schoeman, B., Tchervenkov, C., Hintermann, B., & Axhausen, K. W. (2021). Observed impacts of the Covid-19 first wave on travel behaviour in Switzerland based on a large GPS panel. Transport Policy, 104, 43–51.
Munawar, H. S., Khan, S. I., Qadir, Z., Kouzani, A. Z., & Mahmud, M. A. P. (2021). Insight into the impact of COVID-19 on Australian transportation sector: An economic and community-based perspective. Sustainability, 13(3), 1276.
Nhamo, G., Dube, K., & Chikodzi, D. (2020). Impacts and implications of COVID-19 on the global hotel industry and Airbnb. In Counting the Cost of COVID-19 on the global tourism industry (pp. 183–204). Springer.
Notteboom, T., Pallis, T., & Rodrigue, J.-P. (2021). Disruptions and resilience in global container shipping and ports: the COVID-19 pandemic versus the 2008–2009 financial crisis. Maritime Economics & Logistics, 23(2), 179–210.
Nugraha, N. M., Fitria, B. T., Puspitasari, D., & Damayanti, E. (2020). Does Earning Per Share (EPS) Affected By Debt To Asset Ratio (DAR) And Debt To Equity Ratio (DER)? PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(10), 1199–1209.
Pandansari, T., & Khasanah, F. (2020). Liquidity ratio analysis, profitability ratio, leverage ratio, and cash flow operations to predict the financial distress in manufacturing companies listed in indonesia stock exchange (2015-2018). Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5-6 August 2020, Purwokerto, Indonesia.
Przybylowski, A., Stelmak, S., & Suchanek, M. (2021). Mobility behaviour in view of the impact of the COVID-19 pandemic—Public transport users in Gdansk case study. Sustainability, 13(1), 364.
Putri, P. (2021). The Effect of Operating Cash Flows, Sales Growth, and Operating Capacity in Predicting Financial Distress. International Journal of Innovative Science and Research Technology, 6(1), 638–646.
Rahmah, I., & Novianty, I. (2021). Comparative analysis of financial distress before and during the Covid-19 pandemic: Empirical evidence In Indonesia. International Journal of Business, Economics and Law, 24(5), 216–222.
Silalahi, H. R. D., Kristanti, F. T., & Muslih, M. (2018). Pengaruh Rasio Keuangan dan Ukuran Perusahaan Terhadap Kondisi Kesulitan Keuangan (Financial Distress) pada Perusahaan Sub-Sektor Transportasi yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2013-2016. EProceedings of Management, 5(1).
Siyoto, S., & Sodik, M. A. (2015). Dasar metodologi penelitian. Literasi Media Publishing.
Sulastri, E., & Zannati, R. (2018). Prediksi financial distress dalam mengukur kinerja perusahaan manufaktur. Jurnal Manajemen Strategi Dan Aplikasi Bisnis, 1(1), 27–36.
Syarifah, S. (2021). Effect of Earnings Management, Liquidity Ratio, Solvency Ratio and Ratio Profitability of Bond Ratings in Manufacturing:(Case Study Sub-Sector Property and Real Estate Sector Companies listed on the Indonesia Stock Exchange (IDX)). International Journal of Business, Economics, and Social Development, 2(2), 89–97.
Wu, L., Shao, Z., Yang, C., Ding, T., & Zhang, W. (2020). The impact of CSR and financial distress on financial performance—evidence from Chinese listed companies of the manufacturing industry. Sustainability, 12(17), 6799.
Zimon, G., & Tarighi, H. (2021). Effects of the COVID-19 global crisis on the working capital management policy: Evidence from Poland. Journal of Risk and Financial Management, 14(4), 169.