PREVENIRE: Journal of Multidisciplinary Science
Vol. 2 No. 1 (2023): January-February

Predicting Bankruptcy Using Altman's Z-Score And Zmijewski Models: Memprediksi Kebangkrutan Menggunakan Model Z-Score dan Zmijewski Altman

Yayu Kusdiana (STIE Mahaputra Riau)

Article Info

Publish Date
28 Feb 2023

Abstract

Oil and natural gas (oil and gas) are strategic natural resources and have an important role in national development. The need for oil and gas is expected to continue to increase in line with economic and population growth. Therefore, oil and gas business activities must be managed as well as possible to meet current and future supplies. Financial crises (financial distress) can occur in various companies and can be a signal of bankruptcy that the company may experience. The purpose of this study is to determine the bankruptcy prediction of Sub-Oil and Gas companies in Indonesia that are listed on the IDX in 2017 – 2020 using Altman's Z – score and Zmijewski models. The Altman Z-Score in predicting bankruptcy has a low accuracy rate of 22.72% with an error of 56.82%, while companies that are in a critical condition or gray area are not included in the calculation of the accuracy or type of error, due to the gray area cannot be determined whether the company is bankrupt or healthy, in other terms, namely the gray area. The Zmijewski in predicting bankruptcy is more accurate than the Altman Z-Score, which is 63.63% with a type error of 36.37%.

Copyrights © 2023




Citation Download
RIS
EndNote, Reference Manager, ProCite
BibTex
Latex, Jabref
Original Source
Download Original
Google Scholar
Check in Google Scholar
Journal Info
PREVENIRE: Journal of Multidisciplinary Science
Website

Abbrev

prevenire

Publisher

Institut Studi Islam Sunan Doe

Subject

Religion Arts Humanities Computer Science & IT Economics, Econometrics & Finance Education Engineering Languange, Linguistic, Communication & Media Materials Science & Nanotechnology Medicine & Pharmacology Social Sciences

Description

This journal is dedicated to exploring and disseminating the results of various creative and innovative thoughts based on scientific research and thought processes. This Journal is a double-blind review journal focused on empirical research that provides novelty to the research with the latest ...