| Summary: | The objective of this research is to show the correlation between financial
rations with the chance of financial distress condition of corporation listed in
Indonesia Stock Exchange in 2003-2009. Financial ratios that used are Current
ratio, Debt to equity ratio, Net profit margin, Inventory turn over, Total assets turn
over, Return on asset , Return on equity.
Data that used in this research are financial statements that published in
Indonesian Capital Market Directory. The sampling methode in this research is
purposive sampling. The samples are 71 corporation, with 35 financial distress
corporation, and 36 non financial distress corporation. Hypothesis were tested by
logistic regression.
The result of this research show that financia ratios are current ratio and
total asset turn over can be used in predicting financial distress on corporation
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