<![CDATA[This study aims to determine the extent to which financial ratios can predict financial distress in BPRS on the island of Java. It also examines the influence of Third Party Funds (DPK) and inflation in moderating the relationship between financial ratios and financial distress. The independent variables include solvency, profitability, efficiency, liquidity, and leverage ratios. The population for this study is BPRS located on the island of Java, with a sample size of 82 BPRS. The study period covers the years 2019-2024, resulting in 492 observations. Data analysis uses panel data regression and Moderated Regression Analysis (MRA). The results show that, partially, solvency, profitability, efficiency, liquidity, and leverage ratios have not been able to explain financial distress in BPRS on the island of Java. In addition, it is found that DPK and inflation are able to moderate the variables of solvency, profitability, efficiency, and leverage toward financial distress. However, they cannot moderate the influence of the liquidity ratio on financial distress. This study illustrates that model complexity can provide different policy directions regarding the resilience of BPRS in facing economic developments.]]>
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