The Effect of Profitability, Liquidity and Leverage on Financial Health in Telecommunications Subsector Companies Listed on the Indonesia Stock Exchange (IDX)

Abstract

This study aims to determine the effect of profitability, liquidity, and leverage on financial health in telecommunication subsector companies listed on the IDX for the 2018-2021 period. The population of this study were telecommunication subsector companies listed on the Indonesia Stock Exchange for the period 2018-2021. The sampling method used was purposive sampling of 19 companies and obtained a sample of 16 companies during the 4-year observation period. The data analysis technique used is multiple discriminant analysis. The results showed that profitability, liquidity and leverage affect financial health because these three ratios are able to distinguish between healthy and unhealthy financial health conditions.