PREDICTION OF FINANCIAL DISTRESS CONDITIONS ON MANUFACTURING COMPANIES LISTED IN INDONESIAN STOCK EXCHANGE

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Muhaimin Dimyati
Deniviar Maulidianty

Abstract

When a company experiences financial problems that drag on, it will cause failure. This research is to find out whether financial ratios (current assets, return on assets, total assets turnover, debt to total assets) can predict financial distress in mining companies listed on the Indonesian derivatives exchange. Also are there differences in performance between companies developing. This study uses 17 samples that meet the criteria. The analysis method used is discriminant and Anova analysis. The results obtained that all variables can predict financial distress, but only return on asset variables that can form discriminant functions in predicting financial distress in mining companies. On the other hand, the performance of the mining company is significantly different in the ratio of return on assets.

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References

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