Effect of Profit and Cash Flow in Prediction of Financial Distress Conditions
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Published:
Jun 30, 2023
Keywords:
Profit, Cash Flow, Financial Distress, BEI
Section
Articles
Statistics Article
Article View : 74 Times
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Abstract
This study aims to examine the effect of earnings and cash flow on the prediction of financial distress. Profit and cash flow as independent variables and finance as the dependent variable. This research was conducted at manufacturing companies listed on the Indonesia Stock Exchange for the 2019-2021 period. The sampling technique in this study used purposive sampling. The samples in this study were 18 consumer and manufacturing goods companies listed on the stock exchange. The analytical method used is multiple linear regression. This research shows that profit has a significant effect on financial distress. While cash flow has a significant effect on financial distress. This result is explained by the simultaneous test (F test) the significant value is greater than the significant level of 0.05 or 0.000 <0.05. This means that it is certain that profit and cash flow have the ability to influence financial distress
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How to Cite
Krisna Trizelika Wahyuni, Anggraini, L. D., & Putri, A. U. (2023). Effect of Profit and Cash Flow in Prediction of Financial Distress Conditions. ProBisnis : Jurnal Manajemen, 14(3), 187–191. https://doi.org/10.62398/probis.v14i3.208
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Fitrianingsih, D. (2021). The Effect of Current Ratio, Debt Ratio, Net Profit Margin and Return on Equity on Financial Distress.
Hamzah, RS, & Annisa, ML (2022). Altman's Z”-Scores for financial distress predictions among food and beverage industry in Indonesia.
Hapsari, RN (2022). Effect of Minimum Capital Adequacy Requirement, Credit Risk, Market Risk, Operational Risk and Liquidity Risk on Bank's Financial Performance.
Hariyanto, M. (2018). Effect of profit and cash flow on financial distress conditions.
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Pane, AA, Rahmadhani, SN, & Dalimunthe, H. (2022). Prediction of Financial Distress in Transportation Companies Before and During the Covid-19 Pandemic in Indonesia .
Pratiwi, IDAA, & Muliartha RM, K. (2019). The Influence of Financial Distress, Company Size, and Audit Delay on Auditor Turnover.
Putriani, A., Damanik, EOP, & Purba, JWP (2022). Analysis of Cash Flow Statements to Assess Financial Performance at PT Indofood Sukses Makmur Tbk.
And Firm Growth Against Financial Distress Conditions in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2018-2020.
Santoso, S. indra. (2017). Influence of Profit, Cash Flow and Corporate Governance on Financial Distress.
Setyawan, B. (2020). The Influence of Cooperative Cash Flows, Investment Cash Flows, Funding Cash Flows and Accounting Profits on Stock Returns on Issuers in the Food and Beverage Sub Sector. Equilibrium
Utami, YP (2021). Effect of Financial Ratios, Operating Cash Flow, and Ownership Structure on Financial Distress Conditions.
Armadani, A., Fisabil, AI, & Salsabila, DT (2021). Analysis of Company Bankruptcy Ratios during the Covid-19 Pandemic.
Curry, K., Banjarnahor, E., Diploma, P., & Finance, E. (2018). Financial Distress in Property Sector Companies
Darwis, D., Paramita, CD, Yasin, I., & Sulistiani, H. (2022). Development of a Cash Flow Control System Using the Direct Cash Flow Method (Case Study : National Unity and Regional Politics Agency of Lampung Province).
Endiana, IDM, Ayu, IG, & Pramesti, A. (2022). The Influence Of Capital Structure, Cash Flow, Good Corporate Governance And Company Size On .
Faldiansyah, AK, Arrokhman, DBK, & Shobri, N. (2020). Analysis of the Effect of Leverage, Company Size, and Cash Flow on Financial Distress.
Fitrianingsih, D. (2021). The Effect of Current Ratio, Debt Ratio, Net Profit Margin and Return on Equity on Financial Distress.
Hamzah, RS, & Annisa, ML (2022). Altman's Z”-Scores for financial distress predictions among food and beverage industry in Indonesia.
Hapsari, RN (2022). Effect of Minimum Capital Adequacy Requirement, Credit Risk, Market Risk, Operational Risk and Liquidity Risk on Bank's Financial Performance.
Hariyanto, M. (2018). Effect of profit and cash flow on financial distress conditions.
Hulu, Y., Harahap, RH, & Nasutian, MA (2018). Management of Village Funds in Empowering Village Communities. Jupiis
Isdina, SH, & Putri, WWR (2021). The Effect of Profits and Cash Flow on Financial Distress Conditions.
Laksono, BS, & Rahayu, Y. (2021). The Influence of Profitability, Investment Decision, and Firm Size on Firm Value.
Malau, YN, Purba, R., Saragih, JMB, & Sinambela, DSB (2022). The effect of using profit, cash flow, liquidity and leverage to predict conditions .
Maruta, H. (2017). Definition, Purpose, Purpose and Steps to Prepare a Statement of Cash Flows.
Marwansyah, S., & Utami, AN (2017). Analysis of Investment Returns, Premium Income, and Claim Expenses on Insurance Company Profits in Indonesia.
Cook, F., & Noviyanti, S. (2019). The Effect of the Characteristics of the Audit Committee on Financial Distress. International
Masdiantini, PR, & Warasniasih, NMS (2020). Financial Statements and Company Bankruptcy Prediction.
Mulyati, S., Hati, RP, & Rivaldo, Y. (2021). Assistance in Making Financial Reports at Pt. Kagaya Manufacturing Asia.
Mutia, E. (2018). The Influence of Profit Information and Cash Flow.
Nailufar, F., Sufitrayati, & Badaruddin. (2018). The Effect of Profit and Cash Flow on Financial Distress Conditions in Non-Bank Companies Listed on the Indonesia Stock Exchange.
Nur, SW (2021). Accountability and Transparency in Village Fund Management in Tellumpanuae Village, Maros Regency .
Nurwanah, A. (2016). Revealing the Strengths and Problems of Agency Theory From an Islamic Perspective.
Pane, AA, Rahmadhani, SN, & Dalimunthe, H. (2022). Prediction of Financial Distress in Transportation Companies Before and During the Covid-19 Pandemic in Indonesia .
Pratiwi, IDAA, & Muliartha RM, K. (2019). The Influence of Financial Distress, Company Size, and Audit Delay on Auditor Turnover.
Putriani, A., Damanik, EOP, & Purba, JWP (2022). Analysis of Cash Flow Statements to Assess Financial Performance at PT Indofood Sukses Makmur Tbk.
And Firm Growth Against Financial Distress Conditions in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2018-2020.
Santoso, S. indra. (2017). Influence of Profit, Cash Flow and Corporate Governance on Financial Distress.
Setyawan, B. (2020). The Influence of Cooperative Cash Flows, Investment Cash Flows, Funding Cash Flows and Accounting Profits on Stock Returns on Issuers in the Food and Beverage Sub Sector. Equilibrium
Utami, YP (2021). Effect of Financial Ratios, Operating Cash Flow, and Ownership Structure on Financial Distress Conditions.