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Research Paper | Finance | Indonesia | Volume 11 Issue 12, December 2022 | Popularity: 5.3 / 10
An Analysis of Altman Z-Score, Springate, and Zmijewski Methods Used to Know the Potential of Financial Distress (Empirical Study on Manufacturing Companies in the Automotive and Component Sub-Sectors Listed on the Stock Exchange for the Year 2018-2021)
Saskia, Sujoko, Sugeng, Budiono Budiono
Abstract: This study aimed to find out and analyzed how the financial performance of the Automotive and Component Sub- Sector Manufacturing Companies using the Altman Z-Score, Springate and Zmijewski methods by analyzing and testing which method was the most stringent to determine the potential for financial distress in 2018-2021. The research type was descriptive quantitative, using secondary data. The sampling technique used was the purposive sampling technique, with a total sample of 9 companies. The research data was in the form of financial statements of automotive and component manufacturing companies that are accessed on the Indonesia Stock Exchange website for 2018-2021. The analysis used in this study was the Altman Z-Score, Springate, and Zmijewski methods. The results showed that the Altman Z-Score method in analyzing the potential for financial distress was 12 samples from the total sample calculated while the Springate method analyzed as many as 18 samples from the total sample calculated. In contrast to the Zmijewski method which only analyzed 1 sample from the total sample used. Thus, the Zmijewski method was a method that has the highest level of accuracy compared to other methods in analyzing the potential for financial distress in automotive and component manufacturing companies listed on the Indonesia Stock Exchange, which is 97.22% with an error rate of 2.78%. The Springate method has a level of accuracy of 50% with an error rate of 50%, and the Altman Z-Score?s one is the lowest method with a level of accuracy of 30.56% with an error rate of 41.67%.
Keywords: Altman Z-Score, Springate, Zmijewski, and Financial Distress
Edition: Volume 11 Issue 12, December 2022
Pages: 557 - 563
DOI: https://www.doi.org/10.21275/SR221208172031
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