ANALYSIS OF FINANCIAL PERFORMANCE BEFORE AND DURING THE COVID-19 PANDEMIC ON THE RISK OF BANKRUPTCY OF LQ45 COMPANIES
Alfiatul Maulida, Nur Anita Chandra Putry, Dinar Fitri Ika Putrirahayu

Universitas Sarjanawiyata Tamansiswa

Abstract

According to Karunia in Hilman & Laturette (2021). The decline in performance every day if it lasts for one year or even more, will make the company bankrupt. To find out whether financial performance before and during the spread of the COVID-19 Pandemic had a positive or negative effect on financial performance, companies listed on the IDX, financial ratio analysis was carried out using the Profitability Ratio, Liquidity Ratio, and Solvency Ratio. (Esomar & Christianty, 2021). To determine the prediction of company bankruptcy, the indicator used is the Altman Z-Score Method because this method is accurate enough to predict company bankruptcy and to determine the company^s health condition. (Idris, 2019). The results showed that Based on the results of SPSS data processing that has been carried out by researchers, the conclusion that the debt to asset ratio before(DARs) covid-19 has a significant influence on financial distress. Meanwhile, the ratio (ROAs) and (CRs) do not have a significant influence on the company^sfinancial distress. In conditions during the pandemicratio return on assets(ROAsa) has a significant effect on financial distress. Meanwhile, the ratios (CRsa) and (DARsa) during the covid-19 pandemic did not have a significant effect onfinancial distress.

Keywords: Financial Performance, Risk, Ratio Analysis, Bankruptcy

Topic: Economics