<![CDATA[This quantitative study was designed to identify and map the magnitude of the partial and simultaneous effects of Return on Assets (ROA) and Operating Cash Flow (ACO) on the potential for financial distress operationalized via the Altman Z-score formula among non-cyclical consumer manufacturing entities listed on the Indonesia Stock Exchange (IDX) during the 2024–2025 period. The study employed a balanced panel data design with purposive sampling, selecting 20 companies (totaling 40 observations), and utilized EViews 12 software to perform econometric estimation based on the Random Effect Model (REM) approach. Partial hypothesis testing confirmed that Return on Assets (ROA) did not exhibit a significant causal relationship with financial distress (t-statistic = 0.311 < t-table = 1.687; p = 0.7578 > 0.05). Conversely, Operating Cash Flow (ACO) was found to exert a significant positive influence on the level of financial distress (t-statistic = 2.988 > t-table = 1.687; p = 0.0050 < 0.05). Simultaneously, the interaction between ROA and Operating Cash Flow contributed significantly to predicting financial distress (F-statistic = 4.826 > F-table = 2.84; p = 0.0137 < 0.05). The coefficient of determination (R² = 0.2069) indicates that 20.69% of the variance in financial distress is accounted for by the two independent predictors, while the majority portion 79.31% is influenced by exogenous factors outside the estimation model.]]>
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