The Effect of Liquidity, Leverage, and Profitability on Financial Distress Using the Altman Z-Score Approach in Oil and Gas Companies Listed on the Indonesia Stock Exchange (IDX) During the 2021–2024 Period
DOI:
https://doi.org/10.63738/kawakib.v2i4.48Keywords:
Liquidity, Leverage, Profitability, Financial Distress, Altman Z-ScoreAbstract
This study aims to examine the effect of liquidity, leverage, and profitability on financial distress using the Altman Z-Score approach in oil and gas companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2024 period. Liquidity is proxied by the Current Ratio (CR), leverage by the Debt to Equity Ratio (DER), and profitability by Return on Assets (ROA). This study employed a quantitative approach with a purposive sampling technique, resulting in a sample of 13 companies. The analytical methods employed included descriptive statistics, panel data regression analysis, and classical assumption testing, including tests for normality, multicollinearity, heteroscedasticity, and autocorrelation. Hypothesis testing was conducted using partial t-tests using EViews 12 software. The results showed that liquidity negatively impacted financial distress, leverage positively impacted financial distress, and profitability negatively impacted financial distress. This suggests that increasing liquidity and profitability can reduce the potential for financial distress, while increasing leverage actually increases the risk of financial distress.
References
Altman, E. i., & Hotchkiss, E. (2006). Corporate Financial Distress and Bankruptcy: Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt.
Arifuddin, Hadisantoso, E., Mayasari, I., & Yulianti, A. F. (2023). How liquidity , profitability , and leverage ratios influence financial distress : A study on Indonesian mining firms. 11(3), 243–252. https://doi.org/10.22437/ppd.v11i3.27470
Arimbi, A., Pangaribuan, D., & Yuniati, T. (2024). Pengaruh Kepemilikan Manajerial, Leverage, Dan Pertumbuhan Laba Terhadap Kebijakan Dividen Pada Perusahaan Sektor Consumer Non-Cyclicals. 3(2), 885–900.
Adityaningrum, F., Nia, M., & Mahirun, W. (2024). The Effect of Profitability , Liquidity , Leverage , Firm Size , Operating Capacity , and Retained Earnings Towards Financial Distress : Evidence from Energy Companies. 20(1), 25–37.
Chairunnisa, N. H., & Nohe, D. A. (2025). Mengatasi Multikoliniearitas Dalam Regresi Linier Berganda Menggunakan Principal Component Analysis Overcoming Multicollinearity in Multiple Linear Regression Using Principal Component Analysis. 16(April), 1–9. https://doi.org/10.30872/eksponensial.v16i1.1155
Isabella, C. Y., Yovita, L., Subagyo, H., & Zaretta, B. (2025). Pengaruh Rasio Keuangan Terhadap Financial Distress Pada Perusahaan Energi Di Bei : Pendekatan Model Grover. 5(1), 319–342.
Maulinda, W., & Hermi. (2022). Pengaruh Profitabilitas, Likuiditas, Dan Leverage Terhadap Nilai Perusahaan Dengan Corprate Social Responsibility Sebagai Variabel Pemoderasi. Jurnal Ekonomi Trisakti.
Nirawati, Lia, Samsudin, A., Stifanie, A., Setianingrum, M. D., Syahputra, M. R., Khrisnawati, N. N., & Saputri, Y. A. (2022). Profitabilitas dalam perusahaan. 60–68.
Rahma, A. U. P. (2020). Analisis Pengaruh Profitabilitas, Leverage, dan Likuiditas. Akuntansi Berkelanjutan Indonesia, 3(3), 253–266.
