Abstract: Financial reports issued by manufacturing companies can be key information in assessing company performance. This research aims to determine the influence of earnings management carried out by goods manufacturing companies through leverage and profitability. In addition, financial distress is seen as a mediating variable in earnings management practices and financial pressure. The research uses secondary data with a quantitative descriptive approach on companies in the Consumer Goods Industry sector on the Indonesian IDX. The research results show that leverage is significant to financial distress, profitability is not significant to financial distress, profitability and financial distress support earnings management practices, other results for the relationship between leverage and earnings management practices were found to be insignificant. Apart from that, financial distress is a good mediator of the relationship between leverage and profitability and earnings management.

Key Word: Leverage,Financial Distress, Profitabilitas, Earnings Management, Manufacturing Company