<![CDATA[Financial distress denotes an erosion of financial soundness that, absent timely detection, may culminate in insolvency. Indonesia’s textile and textile products industry contends with intensifying strain arising from global economic vicissitudes, escalating production outlays, and the repercussions of the COVID-19 pandemic, amplifying susceptibility to financial distress. This study scrutinises the effect of Leverage (Debt to Equity Ratio), Operating Cash Flow Ratio (OCFR), and Total Asset Turnover (TATO) on financial distress, with Operating Profit Margin (OPM) as a moderator. Employing a quantitative approach, the study draws upon secondary data from the financial statements of textile and textile product subsector firms listed on the Indonesia Stock Exchange in 2017–2025. A sample comprising 10 firms, furnishing 90 observations, was delineated through purposive sampling. Financial distress is gauged via the Grover Score, and the data are subjected to panel data regression employing the Random Effect Model (REM) with Moderated Regression Analysis (MRA). The findings disclose that Leverage exerts a significant negative effect upon the Grover Score, betokening heightened exposure to financial distress. OCFR manifests no significant effect, whereas TATO and OPM yield significant positive effects, suggesting that judicious asset utilisation and robust operating profitability attenuate financial distress risk. Moderation analysis discloses that OPM fortifies the effect of Leverage on financial distress and augments the positive nexus between TATO and the Grover Score, yet does not moderate the effect of OCFR. These findings underscore the salience of capital structure stewardship, asset efficiency, and profitability as stratagems for mitigating financial distress within Indonesia’s textile industry.]]>
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