Panel data regression reveals liquidity and profitability improve financial health in Indonesia’s transport sector, highlighting the need for effective debt management.
This study examines the impact of liquidity, leverage, and profitability on the solvency of Indonesian transportation and logistics firms during COVID-19 and recovery (2020–2023). Using panel data regression, results show liquidity and profitability positively affect financial health (measured by Altman Z-Score), while leverage (DER/DAR) has a negative impact. The findings highlight the importance of liquidity and debt management to prevent financial distress. The research provides empirical evidence for financial risk mitigation and policy recommendations to enhance sector stability
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Aditya et al. (2025) studied this question.
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