PENGGUNAAN LABA DAN ARUS KAS UNTUK MEMPREDIKSI KONDISI FINANCIAL DISTRESS PADA PERUSAHAAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2015-2018

Abstract

This study aims to determine the effect of Profit and Cash Flow in predicting financial distress conditions.
A case study on a Textil Company listed on the Indonesia Stock Exchange in 2015-2018. This research
uses quantitative methods, data sources used are primary data and secondary data. Respondents in this
study were 8 companies. The process of data analysis in this study uses multiple linear regression
analysis. This research was conducted at a Textil company listed on the Indonesia Stock Exchange. The
results of this study indicate that based on the t test the Profit X1 variable has a significance value of
0.044 which is smaller than the significance value of 0.05, meaning that the Profit X1 variable has a
significant effect in predicting financial distress. While for the Cash Flow variable X2 has a significant
value of 0.024 less than 0.05, it means that the Cash Flow variable X2 has a significant effect in
predicting financial distress. Based on the F test the two independent variables simultaneously influence
the dependent variable. Based on the test results the coefficient of determination R Square value of 0.571
or 57.1% This means that Profit X1 and Cash Flow X2 have an influence of 57.1% and 43.0% influenced
by other unknown variables. Then it was concluded that Profit and Cash Flow influence in predicting the
condition of Financial Distress.