Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024)

Potential Bankruptcy Detection in the Food and Beverage Industry: Altman Z-Score Approach in the Indonesian Stock Exchange

Authors
Willa Fatika Sari1, *, Abdul Hafiz1, Berandi Suaryansyah1, Andre Riswanto1
1Faculty of Economics and Business, Universitas Bangka Belitung, Bangka, Belitung Province, 33172, Indonesia
*Corresponding author. Email: willa@ubb.ac.id
Corresponding Author
Willa Fatika Sari
Available Online 23 December 2024.
DOI
10.2991/978-94-6463-614-7_10How to use a DOI?
Keywords
Bankruptcy; Altman Z-Score; Financial Distress; Financial Statements; Manufacturing
Abstract

This study aimed to analyze the potential bankruptcy of manufacturing sector companies, food and beverage industry in particular, which was listed in the Indonesia Stock Exchange (IDX) during 2018-2020 period. The study used the Altman Z-Score method to predict bankruptcy in three companies: PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Indofood Sukses Makmur Tbk (INDF), and PT Mayora Indah Tbk (MYOR). The annual financial statements were analyzed using Altman Z-Score. The results showed that ICBP is in a distress condition with an average Z-Score of 1.368. INDF is in the grey area with an average Z-Score of 2.102, while MYOR is categorized as a healthy company with an average Z-Score of 6.725. Based on these results, advice is given to companies in distress to increase working capital, sales, and manage debt more effectively. Meanwhile, a healthy company is expected to continue to maintain its performance.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
23 December 2024
ISBN
978-94-6463-614-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-614-7_10How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

TY  - CONF
AU  - Willa Fatika Sari
AU  - Abdul Hafiz
AU  - Berandi Suaryansyah
AU  - Andre Riswanto
PY  - 2024
DA  - 2024/12/23
TI  - Potential Bankruptcy Detection in the Food and Beverage Industry: Altman Z-Score Approach in the Indonesian Stock Exchange
BT  - Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024)
PB  - Atlantis Press
SP  - 68
EP  - 74
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-614-7_10
DO  - 10.2991/978-94-6463-614-7_10
ID  - Sari2024
ER  -