The Effect Of Liquidity And Profitability On Financial Distress In Retail Companies Listed On The IDX 2015 – 2024 Period

This study aims to analyze the effect of liquidity and profitability on financial distress in retail companies listed on the Indonesia Stock Exchange (IDX) for the 2015–2024 period. This study employed a quantitative method with an associative approach. The sampling technique used purposive sampling with secondary data in the form of financial reports, resulting in a sample of 10 retail companies. Data analysis was performed using panel data regression with the help of EViews 13, and hypothesis testing was performed using F-tests and t-tests at a significance level of 0.05 or 5%. The results indicate that liquidity and profitability simultaneously have a significant effect on financial distress. Partially, liquidity has no effect on financial distress, while profitability has a effect. Therefore, optimal corporate financial management is essential to maintain financial stability.