International Journal of Research and Review Vol.8; Issue: 1; January 2021 Website: www.ijrrjournal.com Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237 International Journal of Research and Review (ijrrjournal.com) 36 Vol.8; Issue: 1; January 2021 Analysis of Financial Ratio to Predict Financial Distress in the Sub Sector of Plantation Company on Indonesia Stock Exchange Period 2010-2018 Rosmei Yunita Sibarani 1 , Nisrul Irawati 2 , Iskandar Muda 2 1,2 Master of Management Program-Postgraduate School of University of Sumatera Utara Corresponding Author: Rosmei Yunita Sibarani ABSTRACT The decline of crude palm oil commodity prices and world demand in 2014 to 2016 lead to decline the capability of plantation companies performance. This is apparent from the declining sales capacity, increase of operating expenses, and inventory expenses and the impact is declining financial performance such as net profit. If this is allowed continuously then the consequences are the plantation sub sector companies possibly can get into the financial distress condition. This research aims to predict the level of financial distress condition and to know the relationship significance using Return On Asset (ROA), Return On Equity (ROE), Current ratio (CR), Debt to Asset Ratio (DAR), Current Liabilities to Assets Ratio (CLAR) and Debt to Equity Ratio (DER). The research population was plantation sub sector companies listed in Indonesia Stock Exchange. Researcher using purposive sampling in order to obtain a sample of 10 companies. This research uses secondary data from annual financial report of plantation sub sector companies in Indonesia Stock Exchange. Data were tested using logistic regression to explain the influence between these variables. The results of this research indicate that the Return On Equity (ROE), Current ratio (CR), Debt to Asset Ratio (DAR), and Debt to Equity Ratio (DER) did not significantly influence financial distress while Return On Asset (ROA), Current Liabilities to Assets Ratio (CLAR) significantly influence financial distress. Keywords: Return On Asset (ROA), Return On Equity (ROE), Current ratio (CR), Debt to Asset Ratio (DAR), Current Liabilities to Assets Ratio (CLAR) dan Debt to Equity Ratio (DER) and financial distress BACKGROUND The oil palm plantation and processing industry is one of the dominant industries that makes a large contribution to economic growth in Indonesia, especially since Indonesia is the largest palm oil producer in the world. Oil palm is also a source of vegetable oil, at this time it has become the main and superior agricultural commodity in Indonesia, both as a source of income for millions of farmer families, the largest foreign exchange earner comes from exports of palm oil and its derivative products, providers of employment, as well as as a source of income. a trigger and spur for the growth of new economic centers, as well as a driving force for the growth and development of the palm oil-based downstream industry in Indonesia. From 2010 to early 2014, the production of palm oil, namely CPO (crude palm oil), experienced a very significant price increase. Mid 2014 to early 2016 the price of CPO began to decline continuously and from 2017 to 2019 the price of CPO decreased significantly, causing the price of FFB (fresh fruit bunches) and PKO (palm kernel oil) to also decline. The decline in commodity prices on the international market that began in recent years has had a negative impact on plantation sector companies in Indonesia, especially those listed on the Indonesia Stock Exchange. The economic slowdown in the destination