USING ALTMAN Z-SCORE METHODS IN PREDICTING BANKRUPTCY IN RETAIL COMPANIES : CASE STUDY OF INDONESIA ELECTRONIC RETAIL COMPANIES

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.