THE IMPACT OF SALES GROWTH AND CASH FLOW FROM OPERATING ACTIVITIES ON FINANCIAL DISTRESS
(AN EMPIRICAL STUDY ON TELECOMMUNICATION COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE PERIOD 2017–2024)
Keywords:
Financial Distress, Sales Growth, Cash Flow from Operating Activities, Altman Z’’-Score, Telecommunication SectorAbstract
Along with the increase in internet penetration in Indonesia, which reached 79.5% in 2024, and the growing demand for digital services, the telecommunications sector has experienced significant development. However, several telecommunications companies listed on the Indonesia Stock Exchange, such as PT Telekomunikasi Indonesia Tbk (TLKM), PT Indosat Tbk (ISAT), PT XL Axiata Tbk (EXCL), and PT Smartfren Telecom Tbk (FREN), still show Altman Z’’-Score values below the financial distress threshold. This phenomenon indicates a discrepancy between industry growth and the financial condition of the companies. This study aims to analyze the effect of Sales Growth and Cash Flow from Operating Activities on Financial Distress in telecommunications sector companies listed on the Indonesia Stock Exchange during the 2020–2024 period. This research employs a quantitative approach using purposive sampling, resulting in four sample companies with a total of 20 observations. Financial distress is measured using the Altman Z’’-Score, sales growth is measured by the net sales growth ratio, and cash flow from operating activities is measured using the Operating Cash Flow Ratio (OCFR). The results of the multiple linear regression analysis indicate that sales growth has a significant negative effect on financial distress, cash flow from operating activities also has a significant negative effect on financial distress, and both variables simultaneously have a significant influence. Based on Signaling Theory, these findings suggest that strong sales growth and positive operating cash flows serve as positive signals for investors in assessing a company's ability to reduce the risk of financial distress.
References
Altman, E. I. (2000). Predicting financial distress of companies: Revisiting the Z-Score and ZETA models. Journal of Banking and Finance, 1(1), 29–36.
Asosiasi Penyelenggara Jasa Internet Indonesia (APJII). (2024). Laporan penetrasi internet Indonesia 2024. Jakarta: APJII.
Badan Pusat Statistik. (2024). Statistik Indonesia 2024. https://www.bps.go.id
Barton, S. L., Hill, N. C., & Sundaram, S. (1989). An empirical test of stakeholder theory predictions of capital structure. Financial Management, 18(1), 36–44.
Brigham, E. F., & Daves, P. R. (2014). Intermediate financial management (12th ed.). Cengage Learning.
Cury, Y., & Banjarnahor, R. (2018). Deteksi dini financial distress dengan menggunakan model Altman. Jurnal Akuntansi dan Keuangan, 13(2), 1–9.
Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2–3), 344–401.
Feanie, N., & Dillak, V. J. (2021). Pengaruh arus kas operasi terhadap financial distress. Jurnal Ekonomi dan Akuntansi, 9(1), 12–20.
Fraser, L. M., & Ormiston, A. (2010). Understanding financial statements (9th ed.). Pearson. Kasmir. (2019). Analisis laporan keuangan (Revisi). PT RajaGrafindo Persada.
Lee, K. H., & Park, J. (2023). Cash flow and bankruptcy risk: Empirical evidence from global firms during the pandemic. Journal of Finance and Economics, 21(1), 88–104.
Platt, H. D., & Platt, M. B. (2002). Predicting corporate financial distress: Reflections on choice-based sample bias. Journal of Economics and Finance, 26(2), 184–199.
Putri, A. R., & Ramadhani, D. (2022). Pengaruh sales growth, operating cash flow, dan current ratio terhadap financial distress. Jurnal Riset Akuntansi, 11(1), 31–42.
Putri, P. A., & Mulyani, N. (2019). Penerapan teori sinyal dalam pengungkapan laporan keuangan.
Jurnal Ilmiah Manajemen dan Bisnis, 10(1), 11–20.
Rahayu, D. (2020). Pengaruh profitabilitas, likuiditas, leverage, dan pertumbuhan penjualan terhadap financial distress. Jurnal Akuntansi, 8(2), 55–68.
Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2013). Fundamentals of corporate finance (10th ed.).
McGraw-Hill Education.
Salsabila, N., & Nugroho, A. (2021). Pengaruh arus kas operasi, likuiditas, dan leverage terhadap financial distress pada perusahaan ritel. Jurnal Akuntansi dan Manajemen, 16(2), 74–88.
Sari, D. M., dkk. (2020). Penggunaan Altman Z-Score dalam mendeteksi financial distress. Jurnal Ilmu Akuntansi, 9(1), 1–12.
Sudaryanti, D., & Dinar, M. (2019). Arus kas operasi dan financial distress. Jurnal Akuntansi dan Keuangan Indonesia, 16(1), 21–35.
Sugiyono. (2022). Metode penelitian pendidikan. Alfabeta.
Sutra, I. N., & Mais, F. (2019). Pengaruh arus kas operasi dan likuiditas terhadap financial distress.
Jurnal Akuntansi dan Keuangan, 10(1), 22–30.
Syuhada, A., dkk. (2020). Signaling theory dalam pelaporan keuangan perusahaan. Jurnal Riset Akuntansi Kontemporer, 12(1), 77–85.
Whitaker, R. B. (1999). The early stages of financial distress. Journal of Economics and Finance, 23(2), 123–132.
White, G. I., Sondhi, A. C., & Fried, D. (2003). The analysis and use of financial statements (3rd ed.).
Wiley.
Widodo, R., & Kurniawan, D. (2023). Pengaruh kinerja keuangan terhadap financial distress pada masa pandemi COVID-19. Jurnal Riset Keuangan, 5(1), 12–25.
Widhiari, K. A., & Merkusiwati, N. K. L. A. (2015). Financial distress prediction using Altman Z-Score. Jurnal Ilmu Manajemen (JUIMA), 3(1), 56–67.
Yusnita, I. (2022). Arus kas operasi sebagai indikator kesehatan keuangan perusahaan. Jurnal Ilmiah Akuntansi dan Bisnis, 13(2), 80–89.
Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374. Ross, S. A. (1977). The determination of financial structure: The incentive-signalling approach. The
Bell Journal of Economics, 8(1), 23–40.
Penman, S. H. (2013). Financial statement analysis and security valuation (5th ed.). McGraw-Hill Education.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
