METODE ALTMAN Z-SCORE UNTUK MEMPREDIKSI FINANCIAL DISTRESS

Abstract

This research aimed to find out the prediction of bankruptcy level of companies, with Altman Z-score analysis.
The research was qualitative. Moreover, the data were secondary, which in form of companies financial
statement during 2014-2017. By using purposive sampling. In line with, there were 11 companies as sample
from 20 companies. Altman Z-Score analysis, it showed if the company got Z-Score>2,99; it considered as
healthy company. However, if its score was between 1.81- 2.99, the company would be potentially bankrupt. So
that, there was possibility to be saved. On the other hand, when the Z-Score of company reached <1,8, it
considered the company had higher risk of bankruptcy. The research result concluded in the last four years, i.e.
2014, there was 1 company was considered in grey area and 10 companies were in healthy condition.
Additionally in 2015 there was l company which considered to be bankrupt and 10 companies were in healthy
condition. Differently, in 2016, there was 3 companies were categorized in grey area and 8 companies were in
healthy condition. In addition, in 2017, there were 2 companies in grey area and 9 companies were in healthy
condition.
Keywords: altman z-score, prediction of bankruptcy, food and beverages companies