LPM Fakultas Ekonomi Universitas Muhammdiyah Buton
Abstract
This study aims to determine the effect of Profit and Cash Flow in predicting financial distress conditions. A case study on a Textil Company listed on the Indonesia Stock Exchange in 2015-2018. This research uses quantitative methods, data sources used are primary data and secondary data. Respondents in this study were 8 companies. The process of data analysis in this study uses multiple linear regression analysis. This research was conducted at a Textil company listed on the Indonesia Stock Exchange. The results of this study indicate that based on the t test the Profit X1 variable has a significance value of 0.044 which is smaller than the significance value of 0.05, meaning that the Profit X1 variable has a significant effect in predicting financial distress. While for the Cash Flow variable X2 has a significant value of 0.024 less than 0.05, it means that the Cash Flow variable X2 has a significant effect in predicting financial distress. Based on the F test the two independent variables simultaneously influence the dependent variable. Based on the test results the coefficient of determination R Square value of 0.571 or 57.1% This means that Profit X1 and Cash Flow X2 have an influence of 57.1% and 43.0% influenced by other unknown variables. Then it was concluded that Profit and Cash Flow influence in predicting the condition of Financial Distress
