Abstract :
The objective of this research are to examine financial ratios that affect financial distress condition of a firm. This research used 29 sample, consist of 21 distress firms and 8 non-distress firms, the firms chosen by purposive sampling. This research using the company?s financial reports for 3 years from 2004 until 2006, the company?s financial reports to see financial ratios that will be used.
The statistic method which used is binary logistic regression (logit) and statistic software spss to process. The result showed efficiency operation ratio (R/TA) and growth ratio (growth R) is significant variable to determine financial distress firms
Keyword : Financial distress, Financial ratios