Abstract
This study tries to elaborate the possibility of financial distress in Indonesia public listed companies from manufacturing field. The manufacturing industry was chosen because of its position as a sector that held a significant contribution in the Indonesia industry as a whole. The test tool used to forecast bankruptcy was Altman Z-Score model which consisted of the ratio of net working capital / total asset (X1), retained earnings / total assets (X2), earnings before interest and tax / total assets (X3), and book value of equity / total liabilities (X4). This research also aimed to explain how each ratio affects financial distress. The total samples in this research were 139 companies during 2016–2018. The companies experiencing financial distress were 55 companies in 2016 and 2017, and 56 companies in 2018. Using the logistic regression test on SPSS 23, this research identifies that the four ratios in Altman Z-Score model had a positively affected the financial distress; with the ratio of retained earnings / total assets and earnings before interest and tax / total assets had the most significant effect.
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