<![CDATA[This study aims to analyse the impact of leverage and profitability on financial distress among property and real estate companies listed on the Indonesia Stock Exchange (IDX) for the period 2022–2025. The research is motivated by the increasing risk of financial distress resulting from the slow recovery of the property sector following the COVID-19 pandemic, rises in the base interest rate, declining profitability, and the delisting of several companies. The study employs a quantitative approach using secondary data in the form of annual financial statements. The research sample comprised 73 companies selected using purposive sampling, yielding 292 observations. Data analysis was conducted using panel data regression with the aid of EViews software. Financial distress was measured using the Modified Altman Z-Score, leverage was proxied by the Debt to Asset Ratio (DAR), and profitability was proxied by Return on Assets (ROA). The results indicate that leverage has a negative and significant effect on the Modified Altman Z-Score, whilst profitability has a positive and significant effect on the Modified Altman Z-Score. Taken together, leverage and profitability have a significant effect on the Modified Altman Z-Score. These findings suggest that managing debt structure and improving profitability play a crucial role in maintaining a company’s financial health and reducing the risk of financial distress.]]>
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