The Influence of Profitability, Liquidity, Leverage, and Firm Size on Financial Distress in Non-Food Retail (2021–2024)

Aisyah Amalia ; Anna Sumaryati
Proceeding of the International Conference on Mana... 📅 2025 Vol 2, No 2 🔗 DOI: 10.61132/icmeb.v2i2.256
Abstract
The purposes of this study analyze financial distress of non-food retail companies registered on the Indonesia Stock Exchange (IDX) between 2021 to 2024, as impacted by profitability, liquidity, leverage, and firm size. The sample criteria were as follows: (1) companies operating in the non-food retail sector and listed on the IDX during the specified period; (2) companies that consistently presented complete annual financial statements for each year; and (3) companies whose financial statements indicated that they reported a profit in the current year. Purposive sampling was employed to select the sample, resulting in 25 companies with a total of 100 observations. This research employed a quantitative approach using secondary data. The data were analyzed using multiple linear regression in SPSS version 25. The results of the partial test (t-test) revealed that profitability (ROA) and liquidity (CR) had a significant positive effect on financial distress. This suggests that higher profitability and liquidity increase the Altman Z-Score, thereby reducing the risk of a company experiencing financial distress. In contrast, leverage (DAR) and firm size (LN) were found to have no significant effect. These results emphasize the dominant role of internal factors, particularly profitability and liquidity, in shaping the financial condition of non-food retail companies in Indonesia.
Keywords
Financial Distress; Firm Size; Leverage; Liquidity; Profitability
How to Cite

Aisyah Amalia & Anna Sumaryati (2025). The Influence of Profitability, Liquidity, Leverage, and Firm Size on Financial Distress in Non-Food Retail (2021–2024). Proceeding of the International Conference on Management, Entrepreneurship, and Business, 2(2). https://doi.org/10.61132/icmeb.v2i2.256

Aisyah Amalia; Anna Sumaryati, "The Influence of Profitability, Liquidity, Leverage, and Firm Size on Financial Distress in Non-Food Retail (2021–2024)," Proceeding of the International Conference on Management, Entrepreneurship, and Business, vol. 2, no. 2, 2025.

Aisyah Amalia; Anna Sumaryati. "The Influence of Profitability, Liquidity, Leverage, and Firm Size on Financial Distress in Non-Food Retail (2021–2024)." Proceeding of the International Conference on Management, Entrepreneurship, and Business, vol. 2, no. 2, 2025.

Aisyah Amalia; Anna Sumaryati. "The Influence of Profitability, Liquidity, Leverage, and Firm Size on Financial Distress in Non-Food Retail (2021–2024)." Proceeding of the International Conference on Management, Entrepreneurship, and Business 2, no. 2 (2025).

Aisyah Amalia & Anna Sumaryati (2025) 'The Influence of Profitability, Liquidity, Leverage, and Firm Size on Financial Distress in Non-Food Retail (2021–2024)', Proceeding of the International Conference on Management, Entrepreneurship, and Business, 2(2). doi: 10.61132/icmeb.v2i2.256.

Aisyah Amalia; Anna Sumaryati. The Influence of Profitability, Liquidity, Leverage, and Firm Size on Financial Distress in Non-Food Retail (2021–2024). Proceeding of the International Conference on Management, Entrepreneurship, and Business. 2025;2(2).

Artikel Terkait

The Role of Work Engagement in Mediating Organizational Support on Lecturer Performance

Indah Sari Liza Lubis; Wilson Bangun; Yusuf Ronny Eduard

The Influence of Social Media Marketing and Affiliate Marketing on Willingness to Buy on Shopee in Medan City

Isna Asdiani Nasution; Pasaman Silaban; Nagian Toni

Digital Invasion or Digital Empowerment? The Role of Work-Life Balance in the Relationship between Digital Leadership and Employee Engagement

Herlina Novita; Wilson Bangun; Elly Romy

Strengthening Institutional Resilience in Public Organizations: The Role of Dynamic Capabilities and Innovative Leadership in the Digital Era

Jholant Bringg Luck Amelia; Wilson Bangun; Sofiyan Sofiyan

Analysis of the Body Shop’s Green Marketing Mix Strategy: A Case Study on the Implementation of Bring Back Our Bottles and Refill Station Programs as a Sustainable Innovation

Nabila Fajrina; Andriyanto Andriyanto; Rabi'ah Adawiyah; Muhammad Firdaus Isfandi

Optimal Portfolio Analysis of Cross-Sector Stocks on the Indonesia Stock Exchange (IDX)

Abdillah Khakim; Dwi Eko Waluyo
Tren Sitasi Jurnal