<![CDATA[Abstract. The textile and garment industry in Indonesia faces increasing financial pressure due to intense global competition, fluctuating raw material prices, and declining company performance, which raises the risk of financial distress. This study aims to analyze the effect of financial performance on financial distress in textile and garment companies listed on the Indonesia Stock Exchange during the 2022–2024 period. This research employs a quantitative approach using panel data regression analysis. Financial distress is measured using the Altman Z-Score model, while financial performance is proxied by Return on Equity (ROE), Current Ratio (CR), Debt to Asset Ratio (DAR), and Total Asset Turnover (TATO). The data used are secondary data obtained from the companies’ annual financial reports. The results show that partially, ROE, CR, and TATO do not have a significant effect on financial distress, while DAR has a significant effect. Simultaneously, financial performance measured by ROE, CR, DAR, and TATO has a significant effect on financial distress. These findings indicate that capital structure management plays an important role in preventing financial distress in textile and garment companies. Abstrak. Industri tekstil dan garmen di Indonesia menghadapi tekanan keuangan yang semakin besar akibat persaingan global, fluktuasi harga bahan baku, serta penurunan kinerja perusahaan yang dapat meningkatkan risiko financial distress. Penelitian ini bertujuan untuk menganalisis pengaruh kinerja keuangan terhadap financial distress pada perusahaan tekstil dan garmen yang terdaftar di Bursa Efek Indonesia periode 2022–2024. Penelitian ini menggunakan metode kuantitatif dengan analisis regresi data panel. Financial distress diukur menggunakan metode Altman Z-Score, sedangkan kinerja keuangan diproksikan dengan Return on Equity (ROE), Current Ratio (CR), Debt to Asset Ratio (DAR), dan Total Asset Turnover (TATO). Data yang digunakan merupakan data sekunder yang diperoleh dari laporan keuangan tahunan perusahaan. Hasil penelitian menunjukkan bahwa secara parsial ROE, CR, dan TATO tidak berpengaruh signifikan terhadap financial distress, sedangkan DAR berpengaruh signifikan. Secara simultan, kinerja keuangan yang diukur dengan ROE, CR, DAR, dan TATO berpengaruh signifikan terhadap financial distress. Hasil ini menunjukkan bahwa pengelolaan struktur modal memiliki peranan penting dalam mencegah terjadinya financial distress pada perusahaan tekstil dan garmen.]]>
