Abstract
This study aims to analyze the effect of liquidity, profitability, and firm size on financial distress in retail sector companies listed on the Indonesia Stock Exchange during the 2021-2024 period. Financial distress is proxied by the Altman Z-Score, liquidity is measured using the Current Ratio, profitability with Return on Assets, and firm size with the natural logarithm of total assets. This research employs a quantitative approach with multiple linear regression analysis on 36 observations obtained through purposive sampling. The results show that partially, liquidity has a positive and significant effect on financial distress, while profitability and firm size have no significant effect. Simultaneously, the three variables have a significant effect on financial distress, with liquidity being the most dominant variable. These findings indicate that liquidity management is a key factor in maintaining the financial stability of retail companies.
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