Analysis of Financial Annual Reports for Bankruptcy Predictions Using Altman Z-Score Method
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Published:
Jun 30, 2022
Keywords:
Altman Z-Score, Bankruptcy, Financial Annual Reports, Prediction, Tobacco Companies
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Articles
Statistics Article
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Abstract
The study focused on comparisons to investigate a company's financial health situation in diagnosing early bankruptcy of tobacco-producing companies using the Altman Z-Score formula. The bankruptcy risk predictions were analyzed from 2013 to 2018 on the Indonesia Stock Exchange website. The investigative data obtained at the www.idx.co.id website address used annual financial statement data from three tobacco companies in Indonesia for six consecutive years. Research illustrates that from 2013 to 2018, tobacco-producing companies are in the healthy and low-risk category. The total variable is the key to changing its health condition if it changes its value. Therefore, the results of this study can analyze the company, especially financial statements, for information on fulfilling its obligations to investors and creditors and managing assets to increase sales in generate profits.
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How to Cite
Wicaksono, K., Musa, P., Bangun, A. A., Lestari, O. B., Aryunani, W., & Sukmono, S. (2022). Analysis of Financial Annual Reports for Bankruptcy Predictions Using Altman Z-Score Method. Journal of Intelligent Decision Support System (IDSS), 5(2), 44-52. https://doi.org/10.35335/idss.v5i2.79
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M. Masodah, P. Musa, E. Pratiwi, and S. Murtiasih, “Purchase Decision and Social Media in Indonesian Context: Moderating Effect of Gender, Income, and Intergenerational,” 2019.
J. Aloy Niresh and T. Pratheepan, “The Application of Altman’s Z-Score Model in Predicting Bankruptcy: Evidence from the Trading Sector in Sri Lanka,” Int. J. Bus. Manag., 2015, doi: 10.5539/ijbm.v10n12p269.
A. D. Góis, M. M. M. De Luca, G. A. S. F. de Lima, and J. T. Medeiros, “Corporate reputation and bankruptcy risk,” BAR - Brazilian Adm. Rev., 2020, doi: 10.1590/1807-7692bar2020180159.
I. Krishernawan and C. Indrawati, “Analisis Kondisi Keuangan Perusahaan dengan menggunakan Model Altman (Z-Score) dan Zavgren (Logit) (Studi Kasus pada Perusahaan Farmasi yang Terdaftar di Bursa Efek Indonesia Periode 2011-2015),” J. Samudra Ekon. dan Bisnis, 2018, doi: 10.33059/jseb.v9i1.456.
S. Sanjaya, “nalisis Prediksi Kebangkrutan Perusahaan Dengan Menggunakan Metode Altman Z-Score Pada Perusahaan Sektor Perkebunan Yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2011-2016,” J. Ilman, 2018.
S. C. B. Prabowo, “Analysis on the Prediction of Bankruptcy of Cigarette Companies Listed in the Indonesia Stock Exchange Using Altman (Z-Score) Model and Zmijewski (X-Score) Model,” J. Apl. Manaj., vol. 17, no. 2, pp. 254–260, 2019, doi: 10.21776/ub.jam.2019.017.02.08.
H. Sarjono, “With altman discriminant model on ten property companies on the total assets exchange [Indonesia: Dengan model diskriminan altman pada sepuluh perusahaan properti di bursa total assets],” pp. 13–20, 2006.
A. O. Lyn M. Fraser, Understanding financial statment. 2014.
Y. Restiani Widjaja, C. Martian fajar, D. Edwar Yokeu Bernardin Dwinta Mulyanti, and S. Nurdin, “Preparation of Simple Financial Statements for MSMEs Convection Industry [Indonesia: Penyusunan Laporan Keuangan Sederhana Untuk UMKM Industri Konveksi],” J. Pengabdi. Kpd. Masy., 2018.
R. A. Pane, Topowijono, and A. Husaini, “Discriminant Analysis to Predict Corporate Bankruptcy [Indonesia: Analisis Diskriminan Untuk Memprediksi Kebangkrutan Perusahaan],” J. Adm. Bisnis, 2015.
Y. Shi and X. Li, “An overview of bankruptcy prediction models for corporate firms: A systematic literature review,” Intang. Cap., 2019, doi: 10.3926/ic.1354.
M. M. Hanafi, Financial Management [Indonesia: Manajemen Keuangan], Kelima. Yogyakarta: BPFE, 2010.
H. Hilmy, S. A. Mohd, and N. A. Fahami, “Factors Affecting Bankruptcy: the Case of Malaysia,” Int. J. Undergraduates Stud., 2013.
V. C. Nguyen, T. N. Nguyen, T. T. O. Le, and T. T. Nguyen, “Determining the impact of financial performance factors on bankruptcy risk: An empirical study of listed real estate companies in Vietnam,” Investment Management and Financial Innovations. 2019, doi: 10.21511/imfi.16(3).2019.27.
M. Sponerova, M. Sponer, and M. Svoboda, “Dependence of Company Size on Factors Influencing Bankruptcy,” SHS Web Conf., 2021, doi: 10.1051/shsconf/20219203028.
Murad and S. AR Hery, Strategic Management and Corporate Policy [Indonesia: Manajemen Strategis Dan Kebijakan Perusahaan]. Erlangga : JAKARTA, 1999.
K. M. Alari, S. B. Kim, and J. O. Wand, “A Tutorial of Bland Altman Analysis in A Bayesian Framework,” Meas. Phys. Educ. Exerc. Sci., 2021, doi: 10.1080/1091367X.2020.1853130.
O. Gerke, “Reporting standards for a bland-altman agreement analysis: A review of methodological reviews,” Diagnostics. 2020, doi: 10.3390/diagnostics10050334.
S. Möller, B. Debrabant, U. Halekoh, A. K. Petersen, and O. Gerke, “An extension of the bland–altman plot for analyzing the agreement of more than two raters,” Diagnostics, 2021, doi: 10.3390/diagnostics11010054.
Rahmat, “Analisis Financial Distress Menggunakan Model Altman Z-Score,” J. ASET (Akuntansi Ris., 2020.
H. Nofitasari and N. Nurulrahmatia, “Analisis Altman Z-Score Untuk Memprediksi Kebangkrutan,” Balanc. J. Akunt. dan Bisnis, 2021.
E. I. Altman and E. Hotchkiss, Corporate Financial Distress and Bankruptcy. 2005.
Edward I Altman, “The journal of philosophy,” Perception, vol. xcv, no. 9, pp. 561–572, 1968.
F. Wulandari, B. Burhanudin, and R. Widayanti, “Analisis Prediksi Kebangkrutan Menggunakan Metode Altman (Z-Score) Pada Perusahaan Farmasi (Studi Kasus Pada Perusahaan yang Terdaftar di Bursa Efek Indonesia Tahun 2011 – 2015),” Benefit J. Manaj. dan Bisnis, vol. 2, no. 1, p. 15, 2017, doi: 10.23917/benefit.v2i1.3237.
B. E. J. Gudang Garam, “Annual Financial Statements PT Gudang Garam Tbk 2012-2013,” Bursa Efek Jakarta (BEJ), 2013.
B. E. J. Gudang Garam, “Annual Financial Statements PT Gudang Garam Tbk 2013-2014,” Bursa Efek Jakarta (BEJ), 2014.
B. E. J. Gudang Garam, “Annual Financial Statements PT Gudang Garam Tbk 2014-2015,” Bursa Efek Jakarta (BEJ), 2015.
B. E. J. Gudang Garam, “Annual Financial Statements PT Gudang Garam Tbk 2015-2016,” Bursa Efek Jakarta (BEJ), 2016.
B. E. J. Gudang Garam, “Annual Financial Statements PT Gudang Garam Tbk 2016-2017,” Bursa Efek Jakarta (BEJ), 2017.
B. E. J. Gudang Garam, “Annual Financial Statements PT Gudang Garam Tbk 2017-2018,” Bursa Efek Jakarta (BEJ), 2018.
B. E. J. Hanjaya Mandala Samporena, “Annual Financial Statements PT. Hanjaya Mandala Samporena Tbk 2012-2013,” Bursa Efek Jakarta (BEJ), 2013.
B. E. J. Hanjaya Mandala Samporena, “Annual Financial Statements PT. Hanjaya Mandala Samporena Tbk 2013-2014,” Bursa Efek Jakarta (BEJ), 2014.
B. E. J. Hanjaya Mandala Samporena, “Annual Financial Statements PT. Hanjaya Mandala Samporena Tbk 2014-2015,” Bursa Efek Jakarta (BEJ), 2015.
B. E. J. Hanjaya Mandala Samporena, “Annual Financial Statements PT. Hanjaya Mandala Samporena Tbk 2015-2016,” Bursa Efek Jakarta (BEJ), 2016.
B. E. J. Hanjaya Mandala Samporena, “Annual Financial Statements PT. Hanjaya Mandala Samporena Tbk 2016-2017,” Bursa Efek Jakarta (BEJ), 2017.
B. E. J. Hanjaya Mandala Samporena, “Annual Financial Statements PT. Hanjaya Mandala Samporena Tbk 2017-2018,” Bursa Efek Jakarta (BEJ), 2018.
B. E. J. Bentoel Internasional Investama, “Annual Financial Statements PT Bentoel Internasional Investama Tbk 2012-2013,” Bursa Efek Jakarta (BEJ), 2013.
B. E. J. Bentoel Internasional Investama, “Annual Financial Statements PT Bentoel Internasional Investama Tbk 2013-2014,” Bursa Efek Jakarta (BEJ), 2014.
B. E. J. Bentoel Internasional Investama, “Annual Financial Statements PT Bentoel Internasional Investama Tbk 2014-2015,” Bursa Efek Jakarta (BEJ), 2015.
B. E. J. Bentoel Internasional Investama, “Annual Financial Statements PT Bentoel Internasional Investama Tbk 2015-2016,” Bursa Efek Jakarta (BEJ), 2016.
B. E. J. Bentoel Internasional Investama, “Annual Financial Statements PT Bentoel Internasional Investama Tbk 2016-2017,” Bursa Efek Jakarta (BEJ), 2017.
B. E. J. Bentoel Internasional Investama, “Annual Financial Statements PT Bentoel Internasional Investama Tbk 2017-2018,” Bursa Efek Jakarta (BEJ), 2018