How sales growth and leverage affect financial distress

Penulis

  • Aditya Amanda Pane Universitas Medan Area, Medan, Indonesia
  • Hasbiana Dalimunthe Universitas Medan Area, Medan, Indonesia
  • Rana Fathinah Ananda Universitas Medan Area, Medan, Indonesia

DOI:

https://doi.org/10.35335/ijafibs.v11i1.84

Kata Kunci:

Debt to Assets Ratio, Financial Distress, Leverage, Sales Growth

Abstrak

COVID-19 pandemic had an extraordinary impact on various economic sectors, including the transportation sector. The imposition of social distancing certainly has an impact on the company's financial condition. The purpose of this research was to determine the effect of sales growth and leverage on the financial distress of transportation companies in Indonesia. Sales growth is measured by the change in sales every year and leverage is measured by the Debt to Asset Ratio. The sample used in this research is the financial statements of transportation companies listed on Indonesia Stock Exchange for 2019 - 2023, consist of 118 samples. The analytical method used is multiple regression. From the results of multiple regression analysis, it was found that sales growth did not have a significant effect on financial distress and leverage have a significant effect on financial distress.

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Diterbitkan

2023-06-30

Cara Mengutip

Pane, A. A., Dalimunthe, H., & Ananda, R. F. (2023). How sales growth and leverage affect financial distress. International Journal of Applied Finance and Business Studies, 11(1), 35–41. https://doi.org/10.35335/ijafibs.v11i1.84