CHOOSING RATIO IN THE FINANCIAL DISTRESS PREDICTION MODEL

Purpose – This study aims to find a financial distress prediction model that is suitable for Indonesian companies.Design/methodology/approach The sample in this amounted 150 data. research was grouped into and non-financial distress. Research data sourced from the Indonesia Stock Exchange. Discriminant analysis used test generate models manufacturing companies Indonesia.Findings Results show ratios contribute are of profitability, liquidity, efficiency.Practical Implications resulting can as basis development future studies on relevant, robust, accurate corporate early warning systems will help stakeholders respond potential bankruptcies accordingly timeOriginality new predict bankruptcy which developing country still rare. Most literature uses Altman Z-Score model.