The purpose of this research is to understand the effect of financial ratios in predicting the possibility of financial distress on companies listed on Sri Kehati index in a row of 2009-2016. This study uses the financial ratios proxied by return on assets, return on capital, net profit margin, P / E ratio, and asset turnover as independent variables. Meanwhile, the financial distress proxied by Z-score is a dependent variable. The population of this study is all companies listed on the index of Sri Kehati in 2009-2016 and listed on the Indonesia Stock Exchange. The sample of this study took nine companies with purposive sampling method and the study period is for eight years in a row (2009-2016). Logistic regression method used in this research. The results show that ROA, ROE and PER have a significant effect on financial distress. Meanwhile, NPM and ATO have no significant effect on financial distress.
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Assaji et al. (2019) studied this question.