Abstract:
Purpose - The purpose of this study is predicting the bankruptcy probability of retail
groceries company by assessing the overall annual report of retail groceries companies
listed in Indonesia Stock Exchange to know the financial condition and status in current
downturn phenomenon of retail groceries publicly company by utilizing the method of
Altman’s Z-Score
Design/ methodology/approaches – This research paper utilizes the secondary data
which are the annual report of retail groceries publicly company that are listed on
Indonesia Stock Exchange. The data come from Indonesia’s Stock Exchange official
Website, IDN Financial website and companies listed official website. The annual
reports of all companies are collected from 2013 up to 2017. Altman’s Z-Score Model
(1993) for non-manufacturing company is applied to know the financial condition and
status of retail groceries publicly company in Indonesia.
Findings – The Z-Score value of five retail groceries companies which are HERO,
MPPA, RANC, AMRT, MIDI declines in 2017. The result indicates the downturn
phenomenon of current retail industry affects the financial performance and status of
those retail groceries publicly company in Indonesia. In 2017, the 3 out of 5 companies
is categorized facing financial distress and having a high probability to face
bankruptcy.
Originality/value – Originality of this research paper is on the analysis of Z-Score
value of retail publicly company that focuses on groceries sector in Indonesia.
