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
Related Articles
- EP ID EP743879
- DOI 10.47191/jefms/v7-i9-03
- Views 93
- Downloads 0
The Relationship between Growth and Quota Restrictions Concerning the Textile and Clothing Industry: A Study on RMG Sector of Bangladesh
The textile and clothing industry plays a significant role in the economy of Bangladesh. At present, the export performance of the readymade garment sector is more than 80% of total exports and hence made about 12% of GD...
Effect of Debt Ratio, Company Size, Reputation of Public Accounting Firms and Company Growth on Going Concern Audit Opinions on Consumer Goods Companies Listed on The Indonesia Stock Exchange For The 2016-2019 Period
Go public companies are required to audit their financial statements by an independent auditor, namely an auditor who works at a public accounting firms. This study aims to examine the effect of debt ratio, company size,...
The Determinants of Customer Satisfaction in Business-To-Consumer: A Multidimensional Approach Applied to Mobile Telephony Services in the Cameroonian Context
This exploration is part of a logic of continuous improvement in customer satisfaction. The aim is to determine the explanatory factors of customer satisfaction in business-to-consumer of mobile telephony services in th...
Forward-Looking Information and its Determinants: an Empirical Evidence from Listed Pharmaceutical Firms of Bangladesh
The purpose of this paper is to examine the factors that affect how forward-looking information is disclosed by Bangladeshi 's listed pharmaceutical firms. In this study, a total sample of 115 firms from 23 pharmaceutica...
Can Foreign Ownership and Leverage Affect Tax Avoidance
A company in carrying out tax avoidance actions is influenced by management decisions and company ownership structure. Companies with a higher level of foreign ownership, then the determination of company policies from f...