Proceedings of the 19th International Symposium on Management (INSYMA 2022)

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Financial Distress Analysis by Using Altman Z-Score Methods: A Case Study of Selected Fertilizer Company in Indonesia Year 2016–2020

Authors
Priyanto1, *
1Airlangga University, Surabaya, Indonesia
*Corresponding author. Email: piyan_04@yahoo.com
Corresponding Author
Priyanto
Available Online 5 December 2022.
DOI
10.2991/978-94-6463-008-4_6How to use a DOI?
Keywords
Financial distress; Altman Z-Score; Bankruptcy; Fertilizer
Abstract

This study aims to analyze financial distress conditions in PT XYZ. This private company produces chemicals and fertilizers in Indonesia and sells them in Indonesia and globally. PT XYZ is chosen because it is Indonesia's biggest and most complete fertilizer industry. This study used secondary data taken from the business enterprise’s economic statements on the company’s official website from 2016 to 2020. The Altman Z-Score model for production non-public corporations is set as the method used. The study used many ratios to calculate financial distress, working capital ratio (ratio between working/operational capital and total/overall assets), retained earnings ratio (retained earnings divided by total assets), EBIT (ratio between earnings before interest and tax and total assets), and also ratio between the book value of the equity and total liabilities.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits 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 19th International Symposium on Management (INSYMA 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
5 December 2022
ISBN
978-94-6463-008-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-008-4_6How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits 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

risenwbib
TY  - CONF
AU  - Priyanto
PY  - 2022
DA  - 2022/12/05
TI  - Financial Distress Analysis by Using Altman Z-Score Methods: A Case Study of Selected Fertilizer Company in Indonesia Year 2016–2020
BT  - Proceedings of the 19th International Symposium on Management (INSYMA 2022)
PB  - Atlantis Press
SP  - 36
EP  - 46
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-008-4_6
DO  - 10.2991/978-94-6463-008-4_6
ID  - 2022
ER  -