Bankruptcy Prediction of PT Sri Rejeki Isman Tbk using the Altman Z-Score Model before the PKPU Filing

Zahra

doi:10.59890/ijels.v3i5.55

Authors

Zahra Universitas Pattimura

DOI:

https://doi.org/10.59890/ijels.v3i5.55

Keywords:

Bankruptcy, Altman Z-Score, Textile, Sritex

Abstract

The objective of this study is to analyze the ability of the Altman Z-Score model to predict the bankruptcy of PT Sri Rejeki Isman Tbk (Sritex) prior to the filing of PKPU in 2021. The data used in this study are secondary data from 2017-2020 financial reports using a descriptive quantitative approach. The results of the Z-Score calculation show a significant decline from 2019 to enter the danger zone in 2021. The Altman Z-Score is effective as an early warning system for the Indonesian textile industry because the 2021 Z-Score value of 1.097 indicates a high bankruptcy potential and is in line with the actual PKPU event.

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