The Influence of Liquidity ratio and Leverage ratio on Financial Distress in The Apparel and Luxury Goods Sub-sector
Abstract
This research seeks to explore the impact of the Current Ratio and Debt to Equity Ratio on Financial Distress. With a sample six (6) companies from the apparel and luxury goods subsector that listed on the Indonesia Stock Exchange in 2019 until 2023, a quantitative methodology was employed. The hypotheses were evaluated using panel data regression analysis. The findings reveal that the suitable regression approach is a random effects model, and the hypothesis testing results show that both the Current Ratio and Debt to Equity Ratio together affect financial distress.
Fields of Study & Subjects
Financial Distress and Bankruptcy Prediction
Financial Analysis and Corporate Governance
Corporate Insolvency and Governance
Publication details
- Journal / source
- International Journal of Managemen Analytics (IJMA)
- Volume
- 4
- Issue
- 1
- Pages
- 121–130
- Publication date
- 6 February 2026