Companies running their business are affected by business cycles and economic challenges. Industry. A decrease in profits and a significant increase in debt ratios result in financial distress. This study aims to determine the effect of leverage, profit margin, and firm size on financial distress. The research method employed is quantitative, utilizing a descriptive and verification analysis approach. The population of this study is property and real estate companies listed on the Indonesia Stock Exchange in 2019-2023, totaling 92 companies. The sampling technique used was nonprobability sampling with the purposive sampling method, and a sample of 21 property and real estate companies over 5 years. The data analysis used is multiple linear regression and coefficient of determination analysis. The results show that partial leverage has a significant negative effect on financial distress, while profit margin and firm size have no significant effect on financial distress.
Sulviani et al. (Wed,) studied this question.