Introduction Birth asphyxia is a prominent and avoidable cause of infant illness and death worldwide, particularly in underdeveloped countries such as Ethiopia. Early identification and control of the underlying contributory factors would help to alleviate the situation. As a result, the goal of this study was to assess the magnitude and determinants of neonatal asphyxia among live newborns at the northern Gondar public Hospitals in northwest Ethiopia. Materials and methods From April 1 to May 2, 2020, 357 newborns were studied in an institution-based cross-sectional study. The sample size was proportionally distributed among three public hospitals, namely Gondar referral teaching hospital, Debark general hospital, and Kola-Diba District Hospital, which was chosen at random. The number of deliveries given at each hospital six months prior to the data collecting period was used to allocate the hospitals. To get all participants, a systematic random sampling approach was adopted based on hospital delivery registration. The physicians’ evaluation of an APGAR score of 7 in the first and fifth minutes of birth was used as the confirmation of birth asphyxia. Data was collected using a standardized and pretested questionnaire. Variables having p-values less than 0.25 were entered into a multivariable logistic regression analysis in the bivariable analysis. At a p-value of 0.05, a statistically significant level was reported. Results As per the study, the total prevalence of neonatal asphyxia was found to be 27.1 (95% CI: 21.4, 32.7). In a multivariable logistic regression analysis, neonates born to rural mothers (AOR = 2.441, 95% CI: 1.137, 5.241), primiparity (AOR = 5.521 95%CI: 1.691, 8.026), premature rupture of membrane, (AOR = 3.202, 95% CI: 1.484, 6.909) and low birth weight (< 2.5kg) (AOR = 3.706, 95%CI: 3.307, 4.152) were all found to be independent predictors of birth asphyxia. Conclusion This study identified that rural residence, primiparity, premature rupture of membrane, and birth weight were found to be the independent predictors of birth asphyxia. The majority of variables that cause birth asphyxia can be controlled.