THE EFFECT OF LIQUIDITY, LEVERAGE, SALES GROWTH, INFLATION, AND INTEREST RATES ON THE FINANCIAL HEALTH OF TRANSPORTATION COMPANIES

Abstract

This study aims to analyze the influence of liquidity, leverage, sales growth, inflation, and interest rates on the financial health of companies. The research employs a quantitative method using panel data regression analysis, covering 10 companies in the transportation and logistics sector listed on the Indonesia Stock Exchange for the 2021–2024 period. The results indicate that, individually, liquidity has a significant positive impact on financial health, while leverage has a significant negative impact. Conversely, sales growth, inflation, and interest rates do not show a significant influence. Collectively, all independent variables significantly affect the financial health of the companies, with an explanatory power of 43.07%. These findings imply that the financial stability of transportation companies is more dependent on debt management and the availability of current assets than on external macroeconomic factors. This research contributes to the financial management literature by identifying the determinants of financial resilience for companies in the transportation sector that maintain a healthy financial status in the post-pandemic era.