Abstract:
Purpose – The purpose of this research was to explore the using of
Altman Z-Score method in predicting bankruptcy in retail companies that listed in
Indonesia stock exchange especially for electronic retail company.
Design/Method – In this study the data were taken from financial report
of 3 retail companies which are PT. Erajaya Swamsembada, PT. Electronic City
Indonesia, PT. Trikomsel Oke that engaged in electronics that listed in Indonesia
Stock Exchange (BEI) year 2012-2017. Altman Z-score is used to predict
bankruptcy in retail electronic companies.
Findings – The result shows PT. Electronic City Indonesia in safe zone
means that will not face bankruptcy. Also show in 2015 PT. Erajaya
Swamsembada in gray zone means companies experience financial problems that
must be handled with proper management, and show PT. Trikomsel Oke in
distress zone because of large debt to several banks.
Originality – Value of this research is the development implication of Altman ZScore methods in predicting bankruptcy in retail company in Indonesia.
