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ALTMAN MODEL DISCRIMINANT ANALYSIS (Z-SCORE) IN PREDICTING BANKRUPTCY POTENTIAL COMPANY IN PT RAMAYANA LESTARI SENTOSA

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Faculty of Economics
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Abstract

Going Concern concepts contained in the basic concepts of accounting theorystates that, basically a company was not established for short-term efforts willlive with the assumption of all time and will never die. But that happenssometimes companies are not running as expected so many companies wentbankrupt. Method of Altman Z-Score is a method used in predicting thepotential bankruptcy of a company that consists of a combination of certainfinancial ratios namely the Working Capital to Total Assets Ratio, retainedEarning to Total Assets Ratio, Earning Before Interest and Taxes to Total AssetsRatio, Market Value of Equity to Book Value of Total Liabilities Ratio, theSales to Total Assets Ratio. The purpose of scientific writing is to know thechange of the five Z-Score and the ratio to determine how the potentialbankruptcy of the company.. 2004-2008 period is considered very healthybecause the index of Z-Score is always is above 2.60, even in the year 2006financial performance of the index reached 16.713 Z-score that indicates thecompany is well positioned Non Bancrupt Company, which means the companyis in financial condition healthy and has no financial problems.

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