The study aims to examine the effect of the independent variable liquidity ratio (current ratio, quick ratio, and cash turn over ratio) on the dependent variable profitability (ROA). Design descriptive quantitative research with time series analysis methods. The sample selection method use simple random sampling. Partial test results prove that (1) the current ratio does not affect profitability (ROA), (2) quick ratio does not affect profitability (ROA),(3) cash ratio does not affect profitability (ROA). The results of calculations simultaneously prove the Adjusted R Square value of 0.057 or 5.7% the dependent variable is influenced by the three independent variables While the rest is influenced by other factors outside the model. This proves that the company's ability to pay off short-term obligations does not affect the ability to generate profits.
ABSTRACT
Purpose - This study aims to analyze the influence of current ratio, return on assets, debt to asset ratio on financial distress during the pandemic in sub-sector companies listed on the IDX.
Research Method - The sampling technique was purposive sampling based on these criteria, from a total population of 18 companies, 7 samples were obtained with an observation period of 6 years, 42 samples were obtained.
Findings - The test results simultaneously show the effect of CR, ROA, DAR on financial distress in construction and building companies listed on the Indonesia Stock Exchange (IDX) in 2015-2020.
Implication – The study provides information that can be used as a consideration for investors in making decision and presents a more complete analysis of financial ratios than previous studies.
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