This study aims to examine and analyze the effect of liquidity, profitability,
leverage, firm size and activity on the financial distress of basic and chemical
industry companies listed on the Indonesia Stock Exchange period of 2017-2020.
The population of this study were 83 basic and chemical industrial companies.
The sampling techique used is purposive sampling method, in order to obtain 28
sample companies with 96 research observations. Data analysis used is
descriptive statistical anlysis and logistic regression analysis. The results of the
analysis show that liquidity, profitability and activity ratios have negative and
significant effect on financial distress, while leverage and firm size have no
significant effect on financial distress.