Analysis of The Altman Z Score To Predict Bankruptcy In The Mining Industry Listed on IDX for the Period 2018-2022
Abstract
In a study entitled “Analysis of The Altman Z Score To Predict Bankruptcy In The Mining Industry Listed on IDX for the Period 2018-2022”, aims to determine the potential bankruptcy of mining industry companies listed on the Indonesia Stock Exchange in 2018-2022. The research background shows that company bankruptcy is a phenomenon that often occurs and can be influenced by internal and external factors of the company. This study uses Altman's Z-Score model as an analytical tool to predict the tendency of corporate bankruptcy. The method used in this research is quantitative by summing up the variable formulation of the ratios in the financial statements according to Altman to obtain Altman's Z score. Based on the research results, it was found that PT Aneka Tambang Tbk and PT Vale Indonesia Tbk showed a healthy financial condition with a high and stable Z-Score value above 2.99 during the research period. Meanwhile, PT Archi Indonesia Tbk and PT Adaro Energy Indonesia Tbk showed bankruptcy-prone financial conditions with low Z-Score values below 2.99 during the same period. These results indicate that on average the four mining industries on the IDX in 2018-2022 show a healthy category with an overall Z-score of 3.262.
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