The Effect of Financial Factors on Financial Distress in Manufacturing Companies on the IDX

This study aims to find financial factors that impact financial Distress in 200 manufacturing companies listed on the Indonesia Stock Exchange (IDX). This study uses secondary data from these companies' annual financial statements. The variables analyzed include cash flow, profitability, and leverage. The analysis method used is multiple regression to determine the effect of each variable on financial Distress. The results showed that profitability significantly affects financial Distress, while leverage has a negative but insignificant effect. Cash flow does not show a significant impact on financial Distress. This study highlights the importance of understanding the interaction between financial factors in managing the risk of financial Distress in manufacturing companies. The results of this study provide practical implications for company management in maintaining financial health by emphasizing increasing profitability and managing leverage appropriately.