Analysis of Financial Statements as a Means of Predicting he Possibility of Bankruptcy Using The Altman Z'-Score Method in Manufacturing Sector Companies for The Period 2019-2021

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Title

Analysis of Financial Statements as a Means of Predicting he Possibility of Bankruptcy Using The Altman Z'-Score Method in Manufacturing Sector Companies for The Period 2019-2021

Creator

Izzah Nadlifah Kirana, Rizky Ramadhan Oktavian, Fastabiqul Khoiroh, Cynthia Eka Violita, Dian Fahriani, Achmad Zaki

Proceedings Item Type Metadata

meta_title

Analysis of Financial Statements as a Means of Predicting he Possibility of Bankruptcy Using The Altman Z'-Score Method in Manufacturing Sector Companies for The Period 2019-2021

Abstract/Description

The manufacturing industry plays a very important role for Indonesia's economic growth. This industry is a strategic industry for business actors. There are lots of good manufacturing business prospects in this country. This study aims to determine the potential bankruptcy of manufacturing companies in the metal sub-sector and the like using the Altman Z'-Score prediction tool based on financial reports published in 2019-2021 and which have been listed on the Indonesia Stock Exchange. The research research method used is descriptive quantitative. The data analysis technique uses manual calculations with the Altman Z'-Score formula, which is used as a predictor of the possibility of bankruptcy in companies. The sample in this study was obtained using purposive sampling, based on the criteria obtained 6 companies. The data used is secondary data obtained from the 2019-2021 Indonesia Stock Exchange. The results showed that 2 companies were declared healthy, namely PT. Alakasa Industrindo Tbk and PT. Copper Mulia Semenan Tbk with an Altman Z'-Score value above 2.90 which indicates that both companies are in a healthy financial condition. Three other companies were declared in gray condition, namely PT. Betonjaya Manunggal Tbk, PT. Gunawan Dianjaya Steel Tbk, and PT. Lion Metal Works Tbk, all three of which have an Altman Z'Score value between 1.20 and 2.90. In addition, there is 1 company declared in a state of bankruptcy or distress, namely PT. Alumindo Light Metal Industry Tbk because it has an Altman Z'-Score value below 1.20.

publication_date

2025/06/15

pdf_url

https://insyma.org/proceedings/files/articles/Rizky_Ramadhan.pdf

abstract_html_url

https://insyma.org/proceedings/items/show/323

keywords

Altman Z’-Score, Bankruptcy, The manufacturing industry, Financial Performance.

firstpage

77

lastpage

80

issn

3047-857X

conference

Proceedings of the International Symposium on Management (INSYMA)

Volume

22

publisher_name

Fakultas Bisnis dan Ekonomika, Universitas Surabaya

Author #1

Izzah Nadlifah Kirana

Author #2

Rizky Ramadhan Oktavian

Author #3

Fastabiqul Khoiroh

Author #4

Cynthia Eka Violita

Author #5

Dian Fahriani

Author #6

Achmad Zaki

no article

12

authors

Izzah Nadlifah Kirana, Rizky Ramadhan Oktavian, Fastabiqul Khoiroh, Cynthia Eka Violita, Dian Fahriani, Achmad Zaki

Files

Rizky_Ramadhan.pdf

Citation

Izzah Nadlifah Kirana, Rizky Ramadhan Oktavian, Fastabiqul Khoiroh, Cynthia Eka Violita, Dian Fahriani, Achmad Zaki, “Analysis of Financial Statements as a Means of Predicting he Possibility of Bankruptcy Using The Altman Z'-Score Method in Manufacturing Sector Companies for The Period 2019-2021,” Proceedings of the International Symposium on Management (INSYMA), accessed July 1, 2025, https://insyma.org/proceedings/items/show/323.

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