This research determines the effect of profitability, public ownership, debt to equity ratio, and dividend payout ratio on the practice of income smoothing. The population in this research are companies in the consumer goods industry sector listed on Indonesian Stock Exchange. The sampling technique used is purposive sampling with certain criteria that obtained 80 observation data of companies in the consumer goods sector during 2012-2016 periods. The data collected were processed using logistic regression method. The results show that: Profitability has positive effect on the practice of income smoothing. Debt to equity ratio has negative effect on the practice of income smoothing. Public ownership and dividend payout ratio has no effect on the practice of income smoothing.