The International Journal of Engineering and Science (IJES) || Volume || 7 || Issue || 10 Ver.III || Pages || PP 64-69|| 2018 || ISSN (e): 2319 – 1813 ISSN (p): 23-19 – 1805 DOI:10.9790/1813-0710036469 www.theijes.com Page 64 Analysis Of Distress Financial Condition Toward Stock Price Of Manufacture Company In The Period Of 2012 – 2016 Dr. Sudarmin Parenrengi, S.E., M.M, Irma Sari Permata, S.E., M.M Fakulty of Economics and Business University of Pancasila Jl. Srengseng Sawah, Jagakarsa Jakarta Selatan 12640 Corresponding Author: Dr. Sudarmin Parenrengi ------------------------------------------------------- ABSTRACT---------------------------------------------------------------- This study is aimed to acknowledge the impact of distress financial condition toward stock price of manufacture company. The population of this study was manufacture companies registered in Indonesia Stock Exchange during the period of 2012 – 2016. The data used in this study was secondary data achieved indirectly through mediator that is data from Indonesia Stock Exchange (ISE) in ISE corner of Faculty of Economics and Business University of Pancasila (FEB-UP) in form of financial report and stock price in 2012 – 2016. The result of this study based on t test result, current ratio (CR) variable and total assets turnover (TATO) variable does not significantly influence the stock price in the manufacturer industry detected with the financial distress condition, while earnings per share (EPS) variable influences the stock price positively significant in the manufacturer industry detected with financial distress condition with Altman Z-Score method registered in Indonesia Stock Exchange in 2012 – 2018. The result of statistics test F (Anova) simultaneously current ratio (CR) variable, total assets turnover (TATO) variable and earnings per share (EPS) variable influences positively significant toward stock price. Key Words: financial distress, current ratio, total assets turnover, earning per share -------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 17-10-2018 Date of acceptance: 03-11-2018 --------------------------------------------------------------------------------------------------------------------------------------- I. INTRODUCTION The unpredictable economic condition in Indonesia results in high risk of acompany to have financial crisis or even bankruptcy. Wrong prediction toward operation continuity of a company in the future can cause fatal impact such as income or investment loss that has been invested in a company. Therefore, it is important to have a model of bankruptcy prediction of a company that is really needed by many parties such as stock holders, investors, bank (the creditor), government, employees, society and management. The ability level of a company to be able to compete is really determined by the performance of the company itself. Before investing their fund to a company, the investors and creditors, initially, will always see the company financial condition. Therefore, it is important for the company to predict and analyze the financial condition. Financial Distress is a condition started when a company cannot fulfil its obligation or indicated cannot fulfil its obligation for several years to undergo or continue its business. Platt and Platt in Almilia and Kristijadi (2003) stated that financial distress defines as a stage of financial condition decline happened before the bankruptcy or liquidation. While according to Darsono and Ashari (2005) “ Ability in predicting financial distress will give benefits to many parties, especially the creditors and investors. Prediction also functions to give supports to any parties related to financial performance of the company if it will have financial problem in the future There are two factors that cause a company experiences financial distress: internal and external factors. One of the causes of internal factor is for example the decrease selling point from year to year, while one of the causes of external factor is the competition between the similar companies. The occurence of financial distresscondition in a company can be acknowledged and detected by measuring tools used, one of them is by using Altman Z-Score method. This method can be used to know if the company has financial distress to see the influence and impact of the company with financial distress by using financial ratio analysis. It is hoped that company can take actions to anticipate the condition lead to bankruptcy as early as possible so there will not be bankruptcy. Based on the explanation above, researchers want to illustrate the calculation by using financial ratio analysis based on the information from annual financial report in manufacture company in Indonesia Stock Exchange during the period of 2012 – 2016. It is done to predict the possibility of company financial problem that can assist company management to know the influence of financial distress by using current ratio (CR),