The Effects of Profitability and Capital Structure on Financial Distress (Survey for Indonesian’s Go-Public Companies of Textile and Garment Segment in Period 2016-2019)

This study was conducted to determine the magnitude of the effect of the partial and \nsimultaneous testing, namely the effect of profitability and capital structure on financial \ndistress in Indonesian’s go-public companies of textile and garment segment in period 2016- \n2019. The sample used in this study were 11 companies with a study period of 4 years. The \ndata analysis technique used in this study is the multiple regression analysis. The results of \nthe study partially show that profitability (Return on Assets) and capital structure (Debt to \nAssets Ratio) have a significant effect on financial distress. Simultaneously show profitability \n(Return on Assets) and capital structure (Debt to Assets Ratio) have a significant effect on \nfinancial distress. The amount of effect shows profitability (Return on Assets) and capital \nstructure (Debt to Assets Ratio) against financial distress of 59.6%, while the rest of 40.4% \ninfluenced by other variables outside the research model.