<![CDATA[This study empirically examines the effect of business risk, the cost to income ratio (CIR), and the equity to assets ratio (EAR) on financial distress in the property, real estate, and construction sector, using PT Wijaya Karya (Persero) Tbk. as the unit of analysis. Financial distress is measured with the modified Altman Z-Score, while business risk, CIR, and EAR serve as independent variables. A quantitative approach is applied to secondary time-series data drawn from the company's audited annual financial statements for 2008–2024, obtained from the Indonesia Stock Exchange and the company's official website, and analyzed with multiple linear regression. Classical assumption tests confirm that the data are normally distributed and free of multicollinearity, heteroscedasticity, and autocorrelation. The results show that business risk, CIR, and EAR each exert a significant positive effect on financial distress, both partially and simultaneously, with the model explaining 97.1 percent of the variation in financial distress. The findings suggest that state-owned construction enterprises need to strengthen operational efficiency and capital structure to mitigate financial distress, a concern that also resonates with the Islamic economic principles of transparency (shiddiq) and the avoidance of wasteful spending (israf).]]>
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