ANALISIS PENGARUH NET PROFIT MARGIN, DEBT TO EQUITY RATIO, OPERATING CASH FLOW, DAN INFLASI TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN SEKTOR ENERGI YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2020-2023

Abstract

This study aims to analyze the effect of net profit margin, debt to equity ratio, operating cash flow, and inflation on the likelihood of financial distress in energy sector companies listed on the Indonesia Stock Exchange during the 2020–2023 period. The sample of this study consists of 165 energy companies included in the Indonesia Stock Exchange listing from 2020 to 2023. The sampling technique used in this study is purposive sampling. Net Profit Margin (NPM), Debt to Equity Ratio (DER), Operating Cash Flow (CFO), Return on Equity (ROE), and Inflation are used as independent variables, while Financial Distress serves as the dependent variable. The analysis method used in this study is multiple linear regression, preceded by hypothesis testing. The results of the study show that in the first model, net profit margin has no effect on financial distress. In the second model, debt to equity ratio has no effect on financial distress. In the third model, operating cash flow has no effect on financial distress. In the fourth model, return on equity has an effect on financial distress. In the fifth model, inflation has no effect on financial distress. Based on these results, it can be concluded that four variables have no significant effect, while one variable does have an effect on financial distress.