Potential Bankruptcy Detection in the Food and Beverage Industry: Altman Z-Score Approach in the Indonesian Stock Exchange

Willa Fatika Sari; Abdul Hafiz; Berandi Suaryansyah; Andre Riswanto

doi:10.2991/978-94-6463-614-7_10

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Potential Bankruptcy Detection in the Food and Beverage Industry: Altman Z-Score Approach in the Indonesian Stock Exchange

Authors

Willa Fatika Sari¹^{, *}, Abdul Hafiz¹, Berandi Suaryansyah¹, Andre Riswanto¹

¹Faculty of Economics and Business, Universitas Bangka Belitung, Bangka, Belitung Province, 33172, Indonesia

^*Corresponding author. Email: willa@ubb.ac.id

Corresponding Author

Willa Fatika Sari

Available Online 23 December 2024.

DOI: 10.2991/978-94-6463-614-7_10 How 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.

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Volume Title: Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024)
Series: Advances in Economics, Business and Management Research
Publication Date: 23 December 2024
ISBN: 978-94-6463-614-7
ISSN: 2352-5428
DOI: 10.2991/978-94-6463-614-7_10 How to use a DOI?
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

ris enw bib

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  -

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