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This analysis examines financial distress indicators in consumer non-cyclical businesses, suggesting key ratios impact outcomes.
In order to lower the risk of bankruptcy, the business must examine the likelihood of financial difficulty as well as the variables that influence that likelihood. This study aims to ascertain the extent to which the Current Ratio (CtR), Quick Ratio (QkR), Cash Ratio (CsR), Net Profit Margin (NePM), and Operating Profit Margin (OePM) impact the likelihood of businesses going through financial distress. The study's population consists of 65 consumer non-cyclical businesses that are listed on the Indonesia Stock Exchange in 2021 and 2023 periods. Purposive sampling is the sampling method used, and 193 firms are included in the sample. Binary regression logistic data analysis is used for hypothesis testing. The findings of this study indicate that current ratio (CtR), and the operating profit margin (OePM) have impact on financial distress. However, the Quick Ratio (QkR), Cash Ratio (CsR), and Net Profit Margin (NePM) have no impact on financial distress.
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Martha et al. (2025) studied this question.
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