Financial distress is a condition in which a company experiences financial decline prior to bankruptcy. Identifying financial distress is crucial for investors to anticipate the risk of bankruptcy. This study aims to examine the effect of financial distress on financial ratios, specifically liquidity ratio, profitability ratio, and leverage ratio. The population consists of all energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2023 period. Purposive sampling was used as the sampling technique, resulting in a total of 340 research samples. The dependent variable is measured on a nominal scale, categorized as 0 for non-financial distress issuers and 1 for financial distress issuers. Data analysis was conducted using descriptive statistics, multicollinearity tests, data quality assessments, hypothesis testing, and logistic regression analysis with IBM SPSS version 25 software. The results indicate that the Current Ratio has a significant negative effect on financial distress. Similarly, the Net Profit Margin also has a significant negative effect on financial distress. Meanwhile, the Debt to Equity Ratio has a significant positive effect on financial distress.

Financial distress is a situation felt by a company facing a financial downturn which is very detrimental to the company's development, so that it will trigger many losses. This research aims to understand what influences the probability of financial distress in a company. This research uses Profitability (ROA), Leverage (DER), Liquidity (CR), Firm Size (LnTA), and Sales Growth (SG) for financial distress. The sample used for observations was 28 industrial sector companies listed on the Indonesia Stock Exchange for the 2018 - 2022 period. The sample was determined using a purposive sampling technique. The analysis technique used is logistic regression analysis. The observation results show that the ROA, CR and Firm Size proxies have a significant negative influence on financial distress and DER has a significant positive influence on financial distress. Meanwhile, Sales Growth results show that it has no effect on financial distress in industrial sector companies