The Effect of Debt to Asset Ratio, Return On Assets and Total Assets Turn Over on Financial Distress (Empire Study on Chemical Sub-Industry Companies Listed on the Indonesia Stock Exchange in 2018–2020)

Limajatini, Limajatini and Susanti, Metta and Anggraeni, Rr. Dian (2022) The Effect of Debt to Asset Ratio, Return On Assets and Total Assets Turn Over on Financial Distress (Empire Study on Chemical Sub-Industry Companies Listed on the Indonesia Stock Exchange in 2018–2020). eCo-Buss, 5 (2). pp. 700-710. ISSN 2622-430

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Official URL: https://jurnal.kdi.or.id/index.php/eb/article/view...

Abstract

This study aims to find out, test & analyze the effect of Debt to Asset Ratio, Return on Asset Ratio, & Total Asset Turnover on Financial Distress empirical study on chemical sub-sector industrial companies listed on the Indonesia Stock Exchange in 2018-2020 either partially or simultaneously. This research is a causative quantitative study. In connection with the problems and objectives of this study, namely, to determine the effect of Debt To Asset Ratio, Return On Assets & Total Asset Turnover on Financial Distress derived from the financial position statements in the company's financial statements. The Least Square Panel data analysis method with Eviews software was used in this observation. In this observation the value of Thitung < Ttabel (1.978) a number which means that the free variable in this observation model partially has no effect on the bound variable. Whereas simultaneously there is a probability value of 0.0000 < 0.05, which means that independent variables in this observation model simultaneously affect the dependent variable. The F value of this observation (24.8421 > Ftabel (2.6754) is a number that means that the free variables in this observation model simultaneously affect the bound variables. The debt-to-asset ratio doesn’t affect financial difficulties because assets derived from company debt do not result in the company's financial difficulties but are influenced by other factors such as equity derived from debt or purchases from debt if sales decrease, they cannot pay purchases and debt will increase burdening the company which will result in financial difficulties. The Return on assets ratio doesn’t affect financial difficulties because the ratio of returning company assets is good when the company's assets can make a profit so that it doesn’t result in financial difficulties, but other factors that can affect financial difficulties such as high purchase rates and low sales growth result in company losses that will cause financial difficulties. The asset turnover ratio doesn’t affect financial difficulties because a good asset turnover ratio is able to generate sales of its total assets so as not to cause the company financial difficulties. Debt to asset ratio, return on assets, Asset turnover ratio simultaneously affect financial difficulties because assets derived from company debt are low, low returns on company assets or even company assets have losses, asset turnover to generate sales of its total assets is unstable and many other supporting factors

Item Type:	Article
Uncontrolled Keywords:	Debt To Asset Ratio, Chemical Industry, Financial Difficulties, Return On Assets, Total Assets Turn Over
Subjects:	600 Teknologi dan Ilmu Terapan (Bisnis) > 650.05 Majalah & Jurnal Bisnis 600 Teknologi dan Ilmu Terapan (Bisnis) > 657 Akuntansi > 657.7 Akuntansi Modal, Aset, Kas, Inventaris dan Leasing
Divisions:	Fakultas Bisnis > Manajemen (S1)
Depositing User:	Muhamad Kemal Prasetyo
Date Deposited:	21 Aug 2026 08:06
Last Modified:	21 Aug 2026 08:06
URI:	https://repositori.buddhidharma.ac.id//id/eprint/3395

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