Potential Bankruptcy Detection in the Food and Beverage Industry: Altman Z-Score Approach in the Indonesian Stock Exchange
- DOI
- 10.2991/978-94-6463-614-7_10How to use a DOI?
- Keywords
- Bankruptcy; Altman Z-Score; Financial Distress; Financial Statements; Manufacturing
- Abstract
This study aimed to analyze the potential bankruptcy of manufacturing sector companies, food and beverage industry in particular, which was listed in the Indonesia Stock Exchange (IDX) during 2018-2020 period. The study used the Altman Z-Score method to predict bankruptcy in three companies: PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Indofood Sukses Makmur Tbk (INDF), and PT Mayora Indah Tbk (MYOR). The annual financial statements were analyzed using Altman Z-Score. The results showed that ICBP is in a distress condition with an average Z-Score of 1.368. INDF is in the grey area with an average Z-Score of 2.102, while MYOR is categorized as a healthy company with an average Z-Score of 6.725. Based on these results, advice is given to companies in distress to increase working capital, sales, and manage debt more effectively. Meanwhile, a healthy company is expected to continue to maintain its performance.
- Copyright
- © 2024 The Author(s)
- Open Access
- Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
Cite this article
TY - CONF AU - Willa Fatika Sari AU - Abdul Hafiz AU - Berandi Suaryansyah AU - Andre Riswanto PY - 2024 DA - 2024/12/23 TI - Potential Bankruptcy Detection in the Food and Beverage Industry: Altman Z-Score Approach in the Indonesian Stock Exchange BT - Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024) PB - Atlantis Press SP - 68 EP - 74 SN - 2352-5428 UR - https://doi.org/10.2991/978-94-6463-614-7_10 DO - 10.2991/978-94-6463-614-7_10 ID - Sari2024 ER -