Financial Ratio Analysis to Predict Financial Distress on Property and Real Estate Company listed in Indonesia Stock Exchange

This study aims to prove the ability of financial ratios in measuring financial distress. As is known that the start of the number of new companies that compete in order to achieve corporate goals, even more national companies that want to compete with foreign companies. On this basis, researchers attempt to prove the probability of occurring financial distress by using several financial ratios, especially large companies such as property and real estate firms. The financial ratios used in this study are current ratio, debt ratio, return on equity ratio, and capitalization ratio. With the type of research that is quantitative, the population that has been used in this study are property and real estate companies listed on the Indonesia Stock Exchange period 2012-2016. -. The sample obtained is a company that continuously publish its financial report within five years. According to the results of research that has been done, the ratio is able to measure the possibility of financial distress in property companies and real estate is the current ratio, debt ratio, and return on equity ratio. While the ratio is not able to measure the likelihood of occurrence of financial distress is capitalization ratio.

Download Full-text

Effect of Financial Ratio on Return of Shares on LQ45 Companies Listed on Indonesia Stock Exchange

International Journal of Management and Business (IJMB) ◽

10.46643/ijmb.v1i2.44 ◽

2020 ◽

Vol 1 (2) ◽

pp. 88-97

Author(s):

Romlina Romlina ◽

Syahril Effendi

Keyword(s):

Stock Returns ◽

Stock Return ◽

Stock Exchange ◽

Financial Ratios ◽

Test Results ◽

Current Ratio ◽

Return On Equity ◽

Financial Ratio ◽

Analysis Techniques ◽

Equity Ratio

The purpose of this study was to determine the Effect of Financial Ratios on Stock Returns on LQ45 Companies Listed on the Indonesia Stock Exchange. The independent variables used are Financial Ratios. The dependent variable used is Stock Return. The population in this study is the Current Ratio, Return on Equity, Debt to Equity Ratio, and Stock Return data on LQ45 companies listed on the Indonesia Stock Exchange for 5 years from 2015-2019. The sample in this study is LQ45 companies listed on the Indonesia Stock Exchange (IDX). Data analysis techniques in this study include multiple linear regression. The test results in this study indicate that the Current Ratio variable has no significant effect on Stock Return. From the results of testing the variables above, the Current Ratio shows the calculated T value of -0.242 T value of the table 2.016 with a significance number 0.810> 0.05. The Return on Equity variable influences the Stock Return. From the results of testing the variables above, Return on Equity shows that the calculated T value of 2.232> T table value of 2.016 with a significance number of 0.031 <0.05. Debt to Equity Ratio variable has a significant effect on Stock Return. From the results of testing the variables above, Debt to Equity Ratio shows that the calculated T value of 5.923> T table value of 2.016 with a significance number of 0.000 <0.05. Current Ratio, Return on Equity, and Debt to Equity Ratio together have a significant effect on Stock Returns with the number that a significant value of 0,000 <0.05 and an F count of 14.498> F table of 3.21.

Download Full-text

Analysis of Financial Ratio to Predict Financial Distress in the Sub Sector of Plantation Company on Indonesia Stock Exchange Period 2010-2018

International Journal of Research and Review ◽

10.52403/ijrr.20210105 ◽

2021 ◽

Vol 8 (1) ◽

pp. 36-47

Author(s):

Rosmei Yunita Sibarani ◽

Nisrul Irawati ◽

Iskandar Muda

Keyword(s):

Financial Distress ◽

Stock Exchange ◽

Commodity Prices ◽

Secondary Data ◽

Current Ratio ◽

Return On Equity ◽

Financial Ratio ◽

Research Population ◽

Equity Ratio ◽

The Impact

The decline of crude palm oil commodity prices and world demand in 2014 to 2016 lead to decline the capability of plantation companies performance. This is apparent from the declining sales capacity, increase of operating expenses, and inventory expenses and the impact is declining financial performance such as net profit. If this is allowed continuously then the consequences are the plantation sub sector companies possibly can get into the financial distress condition. This research aims to predict the level of financial distress condition and to know the relationship significance using Return On Asset (ROA), Return On Equity (ROE), Current ratio (CR), Debt to Asset Ratio (DAR), Current Liabilities to Assets Ratio (CLAR) and Debt to Equity Ratio (DER). The research population was plantation sub sector companies listed in Indonesia Stock Exchange. Researcher using purposive sampling in order to obtain a sample of 10 companies. This research uses secondary data from annual financial report of plantation sub sector companies in Indonesia Stock Exchange. Data were tested using logistic regression to explain the influence between these variables. The results of this research indicate that the Return On Equity (ROE), Current ratio (CR), Debt to Asset Ratio (DAR), and Debt to Equity Ratio (DER) did not significantly influence financial distress while Return On Asset (ROA), Current Liabilities to Assets Ratio (CLAR) significantly influence financial distress. Keywords: Return On Asset (ROA), Return On Equity (ROE), Current ratio (CR), Debt to Asset Ratio (DAR), Current Liabilities to Assets Ratio (CLAR) dan Debt to Equity Ratio (DER) and financial distress.

Download Full-text

The Effect Of Financial Ratios To Financial Distress Using Altman Z-Score Method In Real Estate Companies Listed In Indonesia Stock Exchange Period 2014 - 2018

Business and Entrepreneurial Review ◽

10.25105/ber.v19i2.5699 ◽

2019 ◽

Vol 19 (2) ◽

pp. 119

Author(s):

Ouw Desiyanti ◽

Wahyoe Soedarmo ◽

Kristian Chandra ◽

Kusnadi Kusnadi

Keyword(s):

Real Estate ◽

Financial Distress ◽

Stock Exchange ◽

Financial Ratios ◽

Z Score ◽

Return On Equity ◽

Financial Ratio ◽

The Real Estate ◽

Financial Condition ◽

Gray Areas

Purpose - The purpose of this paper is to find out the effect of Financial Ratio on Financial Distress using Z-Score Altman method.Design/Methodology/approach - This paper uses data from 21 property and real estate companies listed in BEI period 2014-2018 with 105 data observations. The variables used are ROE (Return On Equity), DER (Debt to Equity Ratio), CR (Current Ratio), WCR (Working Capital Ratio) and Z-Score.Findings - The results show that ROE and WCR have a positive significant effect on Z-Score Altman's financial distress, DER and CR have negative significant effect on Z-Score Altman's financial distress. While simultaneously shows that at least one variable have a significant effect on Z-Score Altman financial distress.The financial condition of companies in the real estate sector has worsened over the years, marked by the increasing number of companies that were in financial distress from 5 companies in 2014 to 9 companies in 2018. Likewise with companies in the financial condition of gray areas from 8 companies in 2014 became 9 companies in 2018. While companies with a healthy financial condition decreased from 8 companies in 2014 to 3 companies in 2018.Research limitation/implications - The sample is small, and consequently, findings may not be generalisable to the population.Originality/value - This paper aims to obtain empirical evidence of how financial ratios affect financial distress and also the exposure of financial distress probabilities to real estate companies that are used as research samples.

Download Full-text

PENGARUH CURRENT RATIO, DEBT RATIO, NET PROFIT MARGIN DAN RETURN ON EQUITY TERHADAP FINANCIAL DISTRESS

FAKTOR-FAKTOR YANG MEMPENGARUHI PENGGELAPAN PAJAK DI KANTOR PELAYANAN PAJAK PRATAMA TEMANGGUNG ◽

10.26460/ad.v5i2.9814 ◽

2021 ◽

Vol 5 (2) ◽

Author(s):

Dwi Fitrianingsih

Keyword(s):

Financial Distress ◽

Stock Exchange ◽

Total Sample ◽

Profit Margin ◽

Debt Ratio ◽

Manufacturing Companies ◽

Current Ratio ◽

Return On Equity ◽

Net Profit ◽

Positive Effect

This study aims to find out "Financial Ratios to Predict the Condition of Financial Distress in Manufacturing Companies Listed on the Stock Exchange" with a total sample of 42 manufacturing companies listed on the Indonesia Stock Exchange. Data collection techniques used purposive sampling and the number of samples in this research is 42 data.From the results of the partial test (t test) that the Current Ratio (CR) variable has a positive effect on Financial Distress, Debt Ratio (DR) has a positive effect on Financial Distress, Net Profit Margin (NPM) has a positive effect on Financial Distress, Return On Equity (ROE) does not affect the Financial Distress. As well as simultaneous testing (test f) Current Ratio (CR), Debt Ratio (DR), Net Profit Margin (NPM), Return On Equity (ROE) simultaneously have a positive effect on Financial Distress.

Download Full-text

Pengaruh Current Ratio, Debt To Equity Ratio dan Return On Equity Terhadap Return Saham Pada Perusahaan Property dan Real Estate yang Terdaftar di Bursa Efek Indonesia

Journal of Economic Bussines and Accounting (COSTING) ◽

10.31539/costing.v4i2.1533 ◽

2021 ◽

Vol 4 (2) ◽

pp. 547-556

Author(s):

Abdurrohman Oman ◽

Dwi Fitrianingsih ◽

Anis Fuad Salam ◽

Hurul Aeni

Keyword(s):

Real Estate ◽

Stock Returns ◽

Stock Exchange ◽

Sampling Technique ◽

Financial Statement ◽

Current Ratio ◽

Return On Equity ◽

Equity Ratio ◽

Research Type ◽

Descriptive Statistical Analysis

This study aims to determine the influence of Current Ratio (CR) Debt to Equity Ratio (DER) and Return On Equity on Stock Returns either partially or simultaneously in Property and Real Estate Companies listed on the Indonesian Stock Exchange in the 2014-2018 period. This research uses descriptive statistical analysis research type with a quantitative approach. The population in this study amounted to 64 companies. This study uses financial statement data with time series for the last 5 years. Sampling in this study using purposive random sampling technique and obtained a sample of 15 companies. The results of the analysis using the t test and f test state that Current Ratio, Debt to Equity Ratio and Return On Equity have a significant effect on Stock Returns either partially or simultaneously. Keyword : Current Ratio, Debt to Equity Ratio and Return On Equity Against Stock Return

Download Full-text

Pengaruh Rasio Keuangan dan Makroekonomi terhadap Financial Distress Perusahaan Sektor Industri Barang Konsumsi yang Terdaftar di BEI Periode 2015-2019

Jurnal Ilmu Manajemen ◽

10.26740/jim.v9n3.p1293-1307 ◽

2021 ◽

Vol 9 (3) ◽

pp. 1293-1307

Author(s):

Vynda Myllariza

Keyword(s):

Exchange Rates ◽

Consumer Goods ◽

Financial Distress ◽

Stock Exchange ◽

Sampling Technique ◽

Return On Equity ◽

Financial Ratio ◽

Industry Sector ◽

Equity Ratio ◽

Consumer Goods Industry

Financial distress is a condition that occurs in a company that is characterized by financial difficulties, and if it occurs continuously, it will cause bankruptcy, so analysis is needed to determine the factors that influence these conditions. This study aimed to determine the factors that affect the company's financial distress in the consumer goods industry sector. Predictors used as independent variables are financial ratios which include return on assets, return on equity, current ratio, debt to assets ratio, debt to equity ratio, and macroeconomics (inflation and exchange rates) to predict financial distress in companies. The type of research used is causal associative. In taking the research sample using purposive sampling technique and obtaining 26 companies in the consumer goods industry sector listed on the Indonesia Stock Exchange for the 2015-2019 period. Data analysis techniques in the form of logistic regression with SPSS. The results of this study indicate that the financial ratio variables used do not affect financial distress. In addition, macroeconomic variables, which include inflation and exchange rates, also have no significant effect on financial distress.

Download Full-text

The Ability of Financial Ratios to Predict the Index of Banking Sector in Amman Stock Exchange: An empirical study

International Journal of Business Ethics and Governance ◽

10.51325/ijbeg.v4i1.55 ◽

2021 ◽

pp. 86-105

Author(s):

Ahmad Abdallah Ahmed Alswalmeh ◽

Mahmoud Hasan Salem Qaqish

Keyword(s):

Banking Sector ◽

Stock Exchange ◽

Market Value ◽

Financial Ratios ◽

Debt Ratio ◽

Return On Equity ◽

Book Value ◽

Turnover Ratio ◽

Amman Stock Exchange ◽

Equity Ratio

The main objective of this study is to test the ability of the financial ratios (ownership ratio, liquidity ratio, debt ratio, stock turnover ratio, return on equity ratio, return on total assets ratio, and market value to book value ratio) to predict the index of the banking sector in Amman Stock Exchange (ASE) using yearly data during the period between 2000 and 2014. The study counts on fourteen banks listed on Amman Stock Exchange. Using the ordinary least square method (OLS), the seven selected variables against the index of the banking sector have been tested. The findings dictate the financial ratios can predict the index of the banking sector in Amman Stock Exchange and dictate a statistically significant positive relationship between the liquidity ratio, debt ratio, stock turnover ratio, return on total assets ratio, market value to book value ratio with the banking sector index in Amman Stock Exchange. In addition, the study showed a statistically significant negative relationship between, return on equity ratio and the banking sector index in Amman Stock Exchange. In contrast, there is no statistically significant relationship between the ownership ratio and the index of the banking sector in the Amman Stock Exchange.

Download Full-text

ANALISIS RASIO KEUANGAN UNTUK MEMPREDIKSI FINANCIAL DISTRESS PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

Jurnal Manajemen dan Bisnis ◽

10.54367/jmb.v19i2.94 ◽

2019 ◽

pp. 90-102

Author(s):

Juliana Manurung ◽

Kornel Munthe

Keyword(s):

Financial Distress ◽

Prediction Accuracy ◽

Stock Exchange ◽

Manufacturing Companies ◽

Analysis Method ◽

Return On Assets ◽

Current Ratio ◽

Financial Ratio ◽

Study Population ◽

Equity Ratio

This study aims to predict financial distress through the variable lancer ratio, return on assets and debt to equity ratio since 1, 2 and 3 years before it occurs in manufacturing companies listed on the Indonesia Stock Exchange. The study population was all manufacturing companies listed on the Indonesia Stock Exchange, and by using purposive sampling, a sample of 66 companies was obtained. The data analysis method used is logistic regression. The results showed the current ratio variable, return on assets and debt to equity ratio, together had a significant effect on the probability of financial distress for one, two and three years before it occurred in the manufacturing companies listed on the Indonesia Stock Exchange since one, two and three before it occurs at Î± = 5 percent. The level of prediction accuracy of the effect of financial ratio information on the probability of financial distress on companies that have been listed on the Indonesia Stock Exchange since one, two and three years before experiencing financial distress occurred respectively was 97.0 percent, 77.3 percent and 74.2 percent. The current ratio variable and the debt to equity ratio partially do not significantly influence the probability of financial distress for one, two and three years before it occurs, whereas the debt to equity ratio partially has a positive and significant effect on financial distress for one, two and three years before it occurs in companies that have been listed on the Indonesia Stock Exchange.

Download Full-text

Financial Ratios and Probability of Default by Using the KMV-Merton Method in the Non-Financial Sector listed on the Indonesia Stock Exchange

Finance Theory and Practice ◽

10.26794/2587-5671-2020-24-1-6-13 ◽

2020 ◽

Vol 24 (1) ◽

pp. 6-13

Author(s):

D. Malasari ◽

M. Adam ◽

. Yuliani ◽

A. Hanafi

Keyword(s):

Mutual Influence ◽

Stock Exchange ◽

Financial Sector ◽

Financial Ratios ◽

Probability Of Default ◽

Current Ratio ◽

Return On Equity ◽

Negative Effect ◽

Equity Ratio ◽

Positive Effect

This study aims to analyze the predictions of the default probability in the non-financial sector of the Indonesia Stock Exchange and the mutual influence between financial ratios. The KMV–Merton method was used for the calculations. The study was conducted on the example of data from 18 companies listed on the Indonesia Stock Exchange. The scientific materials and documentation were analyzed with the help of the EViews. The authors made the followingconclusions: Return on Equity (ROE) has no effect on the probability of default; Current Ratio (CR) has no effect on the probability of default; Debt to Equity Ratio (DER) has a positive effect on the probability of default; Total Assets Turnover (TAT) has a negative effect on the probability of default.

Download Full-text

ANALISIS PENGARUH CURRENT RATIO, DEBT TO EQUITY RATIO, DAM RETURN ON EQUITY TERHADAP RETURN SAHAM PADA PERUSAHAAN REAL ESTATE DAN PROPERTY YANG TERDAFTAR DIBURSA EFEK INDONESIA PERIODE 2014-2017

Jurnal Fokus Manajemen Bisnis ◽

10.12928/fokus.v9i2.1563 ◽

2020 ◽

Vol 9 (2) ◽

pp. 255

Author(s):

Wahyu Ridha Latifah ◽

Permata Dian Pratiwi

Keyword(s):

Real Estate ◽

Hypothesis Testing ◽

Stock Returns ◽

Stock Exchange ◽

Annual Reports ◽

Current Ratio ◽

Return On Equity ◽

Property Companies ◽

Negative Effect ◽

Equity Ratio

This research was conducted with the aim to empirically examine the effect of Current Ratio, Debt to Equity Ratio and Return on Equity Against Stock Returns on Real Estate and Property Companies on the Indonesia Stock Exchange. The research period was carried out for 4 (four) years, namely 2014-2017. This type of research is causal research, that is, this study looks for a causal relationship between independent variables and the dependent variable. The population in this study are all Real Estate and Property companies listed on the IDX, wich were 48 Real Estate and Property. The sample in this study was obtained by purposive sampling method that is sampling based on criteria; (1) Registered as an active Real Estate and Property company on the Indonesia Stock Exchange (IDX) in 2014-2017, (2) Companies that publish their annual reports on the IDX, (3) Real Estate and Property Companies that issue CR, DER and ROE for each consecutive period from 2014-2017. Based on these criteria, 36 Real Estate and Property companies were obtained. Hypothesis testing is done by panel data regression analysis, but before testing hypotheses first testing classicalassumptions.The results of hypothesis testing are done partially, namely the t test shows that CR has a positive and insignificant effect on stock returns, DER has a significant negative effect on stock returns and ROE has a significant positive effect on stock returns.

Download Full-text