This type of research is quantitative research. The purpose of this research is to
empirically prove the effect of Profitability, Liquidity, Company Size, Sales
Growth and Operating Capacity on Financial Distress. The sample used in this
study is the Basic and Chemical Industry Sector Companies listed on the
Indonesia Stock Exchange (IDX) for the 2017-2020 period. The sampling
technique used was purposive sampling and 192 samples were obtained that met
the criteria. The data analysis technique used is multiple linear regression
analysis. Based on the results of this study, it can be concluded that profitability,
liquidity, operating capacity have a positive effect on financial distress. Firm size
has a negative effect on financial distress. Sales growth has no effect on financial
distress.