The Influence of Operating Cash Flow, Profitability and Leverage on Financial Distress in Manufacturing Companies Registered on the BEI in 2019-2021

Abstract

The problem in this research is that many companies experience a decline in profits to the point of losses which, if not immediately anticipated, can cause financial distress and even bankruptcy, which will harm many parties. The aim of this research is to examine the effect of operating cash flow, profitability, leverage on financial distress in manufacturing companies listed on the BEI in 2019 - 2021. The independent variables used in this research are operating cash flow, profitability and leverage. The type of research used is associative research which uses quantitative methods. The type of research data is secondary data. The population in this study was 176 companies. Using the purposive sampling method, a sample of 26 companies was obtained. The data analysis technique uses logistic regression analysis with the SPSS 25 test tool. The results of this test partially show that operating cash flow has no effect on financial distress, profitability has no effect on financial distress and Leverage has an effect on financial distress. Simultaneously operating cash flow, profitability and leverage influence financial distress.