The Influence of the Current Ratio, Return On Assets and Debt to Equity Ratio on Financial Distress at PT Indofood CBP Sukses Makmur Tbk 2009-2021

Abstract

This study aims to determine the effect of Current Ratio, Return On Assets and Debt to Equity Ratio on Financial Distress at PT. Indofood CBP Sukses Makmur tbk which is listed on the Indonesia Stock Exchange (IDX). The method used in this research is quantitative, namely data that is in the form of numbers. The type of research in this study is in is to carry out quantitative analysis. The research analysis technique uses associative analysis and statistical analysis in the form of a classic assumption test consisting of a normality test, multicollinearity test, heteroscodesity test and autocorrelation test. Then test multiple linear regression analysis using the T test, F test and the coefficient of determination. Data analysis used the help of Software Statistical Package for the Social Sciences (SPSS) version 25. Based on the partial results of the study it was found that Current Ratio had no effect and not significant on financial distress, Return On Assets had a significant effect on financial distress and Debt to Equity Ratio had no effect and not significant to financial distress. However, based on simultaneous research, the Current Ratio, Return on Assets and Debt to Equity Ratio together have a significant effect on Financial Distress at PT. Indofood CBP Sukses Makmur Tbk Period 2009-2021.