Determinants of Financial Distress in Food and Beverage Companies During the Pandemic and Recovery Period 2020–2024
DOI:
https://doi.org/10.53276/eligible.v5i1.133Keywords:
Liquidity, Leverage, Profitability, Operating Efficiency, Financial Distress, Pandemic–recoveryAbstract
This study aims to analyze the influence of liquidity, leverage, profitability, and operating efficiency on Financial Distress in food and beverage companies listed on the Indonesia Stock Exchange during the period 2020–2024. The period is positioned as the pandemic–recovery period to test whether financial ratios remain relevant as an indicator of financial stress as companies move from the crisis phase to recovery. The study uses a quantitative approach with secondary data from annual financial statements. The sample was selected by purposive sampling and produced eight companies or 40 firm-year observations. Financial Distress was operationalized using the Altman Z-Score, so higher scores indicate healthier financial conditions and lower risk of distress. Data were analyzed using multiple linear regression with SPSS version 26. The results showed that Current Ratio and Net Profit Margin had a significant effect on the Financial Distress score, while Debt to Equity Ratio and Return on Assets did not show a significant effect individually. Simultaneously, all four financial ratios have a significant effect on Financial Distress. These findings underscore the importance of multi-ratio evaluations to support early warning systems, corporate resilience, and the sustainability of the food and beverage sector during periods of crisis and recovery.
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