THE PREDICTION OF BANKRUPTCY USING ALTMAN Z-SCORE MODEL: A CASE OF DEPARTMENT STORE LISTED IN INDONESIA STOCK EXCHANGE PERIOD 2012 - 2017

Abstract

Purpose – The purpose of this study is to predict the bankruptcy or financial distress towards retail bankruptcy, especially for retail company which specialised in department store, listed in Indonesia Stock Exchange (IDX) with the Period of 2012-2017 which are PT. Matahari Department Store, PT. Ramayana Lestari Sentosa and PT. Mitra Adi Perkasa. Due to issues about the closing down and bankruptcy of some department store and other retail store in 2017. Design/Methodology/Approach – This research applies one of the methods to predict the bankruptcy which is Altman’s Z-score for non manufacturing company (Z”-Score). The data of financial report of each company is collected from the IDX’s website and from the website of each company. Findings – The result shows that none of the sampled companies will go bankrupt or in a dangerous condition of financial distress. The Z”-Score of each company is higher than the range value. Originality – Value of this reseach is the implication of the using of Altman’s Z”-Score model for non manufacturing company