The objective of research was to determine effect of bankruptcy risk, debt service capacity on price performance of manufacturing firms listed on Nigeria stock exchange between 2014 and 2023. Cross sectional ex-post facto research design with census sampling method was adopted. Secondary data was derived from firm financial statements obtained from NSE and firm websites. Hausaman test for selection of model while diagnosis was carried out using Ramsey Reset test, Period HeteroTest, Cross-section Hetero Test, Pesaran CD for serial correlation and Variance Inflation factor for test of multicollinearity. Multiple Regression was used to determine relationship amongst variables of study. Results revealed Bankruptcy risk has positively influence market value of shares and the speed which the earnings of the company are converted to market price. Specifically, BCR and DSC have positive impacts on Tobin Q, Price earnings ratio, earnings yield and market price. Debt service capacity negatively affects market value of shares and the speed which firm earnings are converted to market price. There is a trade-off between bankruptcy risk and debt service capacity. Higher debt service capacity lowered the risk of bankruptcy. Inflation as a macro-economic factor dampens share prices whilst at the same time improving speed of conversion of earnings to price. Liquidity significantly improves Tobin Q while significantly limiting the speed of conversion of earnings to market price. However, it insignificantly affects market capitalisation and earnings yields. Based on findings firms should formulate a policy that mediates the positive and negative tradeoff effects of bankruptcy risks and debt service capacity whilst simultaneously monitoring liquidity to ensure adequacy in meeting maturing obligations and avoiding idle cash flows. Further, firms should consider impact of inflation while making investment and financing decisions.