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
no article
12
Files
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 27, 2025, https://insyma.org/proceedings/items/show/323.