Analisis Rasio Keuangan untuk Mengukur Prediksi Financial Distress pada BUMD PDAM Kabupaten/Kota di Provinsi Sumatera Utara

Abstract

This research aims to test and analyze the effects of profitability, liquidity and solvency on the financial distress prediction in BUMD PDAM in North Sumatera Province in 2017-2021 financial year. Profitability is measured by using Return on Equity Ratio (ROE), liquidity is measured by using Current Ratio (CR), solvency is measured by using Debt to Total Assets Ratio (DAR), and financial distress is measured by using the Grover method. This research employs causal associative method with a quantitative approach. The research population are all BUMD PDAM in North Sumatera Province. Nonprobability sampling technique is used in this research, namely purposive sampling. The number of samples is 16 BUMD PDAM. Data obtained are analyzed using Logistic Regression with the aid of Eviews 20 software. The results of hypothesis testing indicate that profitability has a significant and positive effect on financial distress in BUMD PDAM Regency/Municipality in North Sumatera Province. Meanwhile, liquidity and solvency does not have a significant effect on financial distress in BUMD PDAM Regency/Municipality in North Sumatera Province.