Bankruptcy Analysis Using the Altman Z-Score Model (Study on Retail Companies Listed on the Indonesia Stock Exchange)
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 09
Abstract
Bankruptcy is a legal or economic event that often results in the complete cessation of all business activities and operations. This bankruptcy usually starts with liquidity problems, but is closely linked to situations where a company's debt exceeds its total assets. The objective of this study is to evaluate the effectiveness of the Altman Z-score model as a tool to predict bankruptcy. The main focus of this study is retail companies listed on the Indonesia Stock Exchange in 2021-2023. 31 companies participated in the study, supported by 93 financial statements. The researchers used purposive sampling method for the sampling process. The study uses the modified Altman Z-score method (1995) to analyze the obtained data. The analysis revealed that 17 companies (54.8%) could be classified as healthy. 3 companies (9.7%) were classified as weak, and 11 companies (36.7%) were expected to go bankrupt. These results provide insight into the financial health of the retail companies surveyed and highlight the importance of using predictive models to determine bankruptcy risk.
Authors and Affiliations
Abdul Rohim , Widy Taurus Sandy , Achmad Hilal Akbar Ramadhan , Agus Taufik Hidayat,
Keywords
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- EP ID EP743879
- DOI 10.47191/jefms/v7-i9-03
- Views 27
- Downloads 0
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