The Effect of Financial Ratio on Financial Distress (Study on Company Subsector Transportation that Listed at Indonesia Stock Exchange, 2018-2020)

This study aims to determine and
analyze the effect of financial ratios measured
byprofitabilityratios,liquidityandleverageonfinancia
ldistressintransportationcompanies listed on the
Indonesia Stock Exchange as measured by the
Altman Z-Score method. This study uses secondary
data obtained from the Indonesian StockExchange
website, namely www.idx.co.id and the website of
each company by
usingasampleof12companieslistedontheIndonesiaSt
ockExchangefortheperiod2018-2020.
This research was analyzed using multiple linear
regression analysis. The resultsshowed that
profitability ratios, liquidity and leverage
simultaneously had a
significanteffectonfinancialdistress.Partialtestresult
sshowthattheprofitabilityratiosdoesnoteaffect
financial distress. The liquidity ratio has an effect
on financial distress. Theleverage ratio has an
effect on financial distress in transportation
companies listed ontheIndonesia StockExchange
forthe period2018-2020.