Financial Distress Risks in Heavy Construction Firms: A Ratio-Based Analysis
This study examines how financial ratios affect heavy construction companies listed on the Indonesia Stock Exchange between 2018 and 2023 in terms of their likelihood of experiencing financial hardship. Utilizing logistic regression. The study analyzed 22 companies selected through purposive samplin...
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| 格式: | 文件 |
| 语言: | English |
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EDP Sciences
2025-01-01
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| 丛编: | SHS Web of Conferences |
| 主题: | |
| 在线阅读: | https://www.shs-conferences.org/articles/shsconf/pdf/2025/03/shsconf_icarsess2024_01001.pdf |
| _version_ | 1826545184612024320 |
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| author | Haryono S.T. Nusanto Gunawan Sukarno Agus Ayu Fatmayuni Ida Dwi Ari Ambarwati Sri Nur Salsabilla Aina |
| author_facet | Haryono S.T. Nusanto Gunawan Sukarno Agus Ayu Fatmayuni Ida Dwi Ari Ambarwati Sri Nur Salsabilla Aina |
| author_sort | Haryono S.T. |
| collection | DOAJ |
| description | This study examines how financial ratios affect heavy construction companies listed on the Indonesia Stock Exchange between 2018 and 2023 in terms of their likelihood of experiencing financial hardship. Utilizing logistic regression. The study analyzed 22 companies selected through purposive sampling using STATA. The findings show that return on equity has a substantial negative impact on the likelihood of financial distress; a higher retun on equity reduces the risk, while a lower retun on equity increases it, as observed in WSKT. Quick ratio significantly positively probability financial distress; lower Quick ratio raises the risk, as seen with MTPS. Debt to assets ratio also significantly increases probability financial distress; a higher Debt to assets ratio is associated with greater risk, exemplified by ASCT. Total assets turnover ratio is positively related to probability financial distress as demonstrated by TAMA. This study emphasizes how crucial it is to keep an eye on these financial measures in order to evaluate the danger of financial trouble and a company's overall stability. |
| first_indexed | 2025-03-14T05:13:50Z |
| format | Article |
| id | doaj.art-5706b2e98c7a4627961f1e58a378c4ee |
| institution | Directory Open Access Journal |
| issn | 2261-2424 |
| language | English |
| last_indexed | 2025-03-14T05:13:50Z |
| publishDate | 2025-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | SHS Web of Conferences |
| spelling | doaj.art-5706b2e98c7a4627961f1e58a378c4ee2025-03-06T11:53:18ZengEDP SciencesSHS Web of Conferences2261-24242025-01-012120100110.1051/shsconf/202521201001shsconf_icarsess2024_01001Financial Distress Risks in Heavy Construction Firms: A Ratio-Based AnalysisHaryono S.T.0Nusanto Gunawan1Sukarno Agus2Ayu Fatmayuni Ida3Dwi Ari Ambarwati Sri4Nur Salsabilla Aina5Universitas Pembangunan Nasional Veteran YogyakartaUniversitas Pembangunan Nasional Veteran YogyakartaUniversitas Pembangunan Nasional Veteran YogyakartaUniversitas Pembangunan Nasional Veteran YogyakartaUniversitas Pembangunan Nasional Veteran YogyakartaUniversitas Pembangunan Nasional Veteran YogyakartaThis study examines how financial ratios affect heavy construction companies listed on the Indonesia Stock Exchange between 2018 and 2023 in terms of their likelihood of experiencing financial hardship. Utilizing logistic regression. The study analyzed 22 companies selected through purposive sampling using STATA. The findings show that return on equity has a substantial negative impact on the likelihood of financial distress; a higher retun on equity reduces the risk, while a lower retun on equity increases it, as observed in WSKT. Quick ratio significantly positively probability financial distress; lower Quick ratio raises the risk, as seen with MTPS. Debt to assets ratio also significantly increases probability financial distress; a higher Debt to assets ratio is associated with greater risk, exemplified by ASCT. Total assets turnover ratio is positively related to probability financial distress as demonstrated by TAMA. This study emphasizes how crucial it is to keep an eye on these financial measures in order to evaluate the danger of financial trouble and a company's overall stability.https://www.shs-conferences.org/articles/shsconf/pdf/2025/03/shsconf_icarsess2024_01001.pdffinancial distressfinancial ratiologistic regressionproxystata |
| spellingShingle | Haryono S.T. Nusanto Gunawan Sukarno Agus Ayu Fatmayuni Ida Dwi Ari Ambarwati Sri Nur Salsabilla Aina Financial Distress Risks in Heavy Construction Firms: A Ratio-Based Analysis SHS Web of Conferences financial distress financial ratio logistic regression proxy stata |
| title | Financial Distress Risks in Heavy Construction Firms: A Ratio-Based Analysis |
| title_full | Financial Distress Risks in Heavy Construction Firms: A Ratio-Based Analysis |
| title_fullStr | Financial Distress Risks in Heavy Construction Firms: A Ratio-Based Analysis |
| title_full_unstemmed | Financial Distress Risks in Heavy Construction Firms: A Ratio-Based Analysis |
| title_short | Financial Distress Risks in Heavy Construction Firms: A Ratio-Based Analysis |
| title_sort | financial distress risks in heavy construction firms a ratio based analysis |
| topic | financial distress financial ratio logistic regression proxy stata |
| url | https://www.shs-conferences.org/articles/shsconf/pdf/2025/03/shsconf_icarsess2024_01001.pdf |
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