THE EFFECT OF PROFITABILITY, CASH FLOW, LEVERAGE, AND FIRM GROWTH ON FINANCIAL DISTRESS

Abstract

This study was conducted to examine the effects of profitability, cash flow, leverage, and firm growth on financial distress. The sampling technique used in this study was purposive sampling, resulting in a sample of 84 companies selected from the basic materials sector that were consistently listed on the Indonesia Stock Exchange (IDX) during the 2022-2024 period. The results of this study indicate that profitability has a negative and significant effect on financial distress. Cash flow has a positive and significant effect on financial distress. Leverage has a positive and significant effect on financial distress. Firm growth has no significant effect
on financial distress.