MSR Journal, Vol 1 issue 3 2022 ISSN : 2828-4216 43 FINANCIAL PERFORMANCE AND FINANCIAL DISTRESS BEFORE AND DURING THE COVID-19 PANDEMIC (Empirical Evidence from the Tourism and Hospitality Firms Listed on Indonesia Stock Exchange) Ani Mayuni, Animayuni6@gmail.com University of Sultan Ageng Tirtayasa, Banten, Indonesia Iis Ismawati, iis_isma09@yahoo.co.id University of Sultan Ageng Tirtayasa, Banten, Indonesia Nurhayati Soleha* nurhayatisoleha@untirta.ac.id University of Sultan Ageng Tirtayasa, Banten, Indonesia ABSTRACT This study aims to analyze differences in financial performance and financial distress before and during the covid-19 pandemic in Indonesian tourism and hospitality companies listed on the Indonesia Stock Exchange (IDX). Financial performance is measured using the Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE) proxies, whilst Financial distress is measured using the Altman Z-Score model. The tests used are descriptive statistics test, normality test by using Kolmogorov- Smirnov, and hypothesis test by using Wilcoxon Signed Rank Test from 25 firms for the 2019-2020 period. The results of this study indicate that there are differences in the conditions of financial performance and financial distress before and during the covid-19 pandemic. Most of the companies (96%) was a decline in financial performance conditions during the pandemic so many companies experienced financial difficulties. Keywords: financial distress, financial performance, covid-19, tourism and hospitality firms INTRODUCTION Financial distress analysis is needed to obtain an early warning of bankruptcy (early signs of bankruptcy). It can be used as a tool to recognize the initial symptoms of financial distress conditions for further efforts to improve conditions before they arrive in a crisis or bankruptcy condition, especially since the Covid-19 outbreak, many companies are vulnerable to bankruptcy (Sumarni, 2022). The implementation of lockdown (known as Large-Scale Social Restrictions (PSBB) in Indonesia) began to be implemented at the beginning of the second quarter of 2020 which caused the growth of the tourism, restaurant, and hotel sectors to minus 5.3% (Sari & Setyaningsih, 2022). This study focuses on conducting a comparative analysis of financial performance and financial distress in the period before and during the covid-19 pandemic to find out how significant the impact caused by covid-19 is on financial distress. The analyzed financial performance is seen from the point of view of how able the company is to generate profits or profits. Figure 1. Foreign tourists growth in Indonesia year 2018-2020