This study aims to examine the effect of profitability, liquidity, and activity on financial distress in textile and garment sub-sector companies listed on the Indonesia Stock Exchange (IDX) during 2020–2023. Using a quantitative approach, the study measures profitability with Basic Earning Power (BEP), liquidity with Current Ratio (CR), activity with Working Capital Turnover (WCT), and financial distress with the Altman Z-Score. A purposive sampling technique yielded 5 companies from a population of 21. Data were obtained from annual financial reports published on the IDX website. The findings reveal that profitability and liquidity have a significant negative effect on financial distress, while activity shows no significant effect. Collectively, the three variables significantly influence financial distress. These results emphasize the importance of managing financial performance, particularly profitability and liquidity, to reduce the risk of financial distress in the textile and garment industry.