Analysis of The Effect of Financial Ratios to Probability Default of Indonesia’s Coal Mining Company

Celly Septine Mayliza, Adler Haymans Manurung and Benny Hutahayan

Journal of Applied Finance & Banking, 2020, vol. 10, issue 5, 9

Abstract: The purpose of this study is to analyze the effect of debt equity ratio (DER), gross profit margin (GPM), net profit margin (NPM), Time Interest Earned (TIE) and current ratio (CR) to probability bankruptcy in Indonesia’s coal mining company for period 2016 to 2018. This research use model panel data to estimate coefficient model. The results obtained that gross profit margin, EBIT / Interest and Current Ratio have significantly affecting probability bankruptcy. While the debt equity ratio and net profit margin did not have significant to affect the probability of bankruptcy in Indonesia’s coal mining company that listed on the Indonesia Stock Exchange.  JEL classification numbers: B26, C23, C58, D53, E44, L25, L71, Q43.

Keywords: Debt equity ratio; Gross profit margin; Net profit margin; Time Interest Earned; Current ratio; Probability default. (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.scienpress.com/Upload/JAFB%2fVol%2010_5_9.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spt:apfiba:v:10:y:2020:i:5:f:10_5_9

Access Statistics for this article

More articles in Journal of Applied Finance & Banking from SCIENPRESS Ltd
Bibliographic data for series maintained by Eleftherios Spyromitros-Xioufis ().