<![CDATA[The pharmaceutical subsector in Indonesia has recently faced increasing financial pressure due to high dependence on imported raw materials, rising financing costs, and unstable economic conditions, which may increase the risk of financial distress. This study aims to examine the effects of profitability, firm size, and leverage on financial distress in pharmaceutical companies listed on the Indonesia Stock Exchange during the 2018–2024 period. This research employed a quantitative associative approach using secondary data obtained from audited annual financial reports. The sample consisted of 10 pharmaceutical companies selected through purposive sampling, resulting in 70 balanced panel observations. Panel data regression analysis was applied to evaluate both partial and simultaneous relationships among the variables. The findings indicate that profitability, measured by Return on Assets (ROA), has a significant effect on financial distress, while firm size, proxied by the natural logarithm of total assets, does not significantly affect financial distress. Leverage, measured by the Debt-to-Asset Ratio (DAR), also significantly affects financial distress. Simultaneously, profitability, firm size, and leverage significantly explain the variation in financial distress. These findings highlight the importance of maintaining profitability and prudent debt management to reduce financial distress risk in pharmaceutical companies.]]>
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