THE BANKRUPTCY PREDICTION OF PT HK METALS UTAMA TBK USING ALTMAN Z-SCORE METHOD

Abstract

The purpose of this study is to conducted a computational experiment in predicting bankruptcy at PT HK Metals Utama Tbk (HKMU) based on one method for measuring the financial distress using Altman Z-Score. Five independent variables in this study will be tested some indicators, namely, Working Capital to Total Assets (WCTA), Retained Earnings to Total Assets (RETA), EBIT to Total Assets (EBITTA), Book Value of Equity to Total Liabilities (BVETL), and Sales to Total Assets (STA). This study uses quantitative research that has eight samples of annual financial statements PT HK Metals Utama Tbk (HKMU) period from 2015 – 2022. Data was gathered from IDX website. The results showed that the Altman Z Score can be used to predict bankruptcy. The results of this study also determine the financial distress of PT HK Metals Utama Tbk (HKMU) in 2015-2017 before the company IPO and 2019-2022 after the company IPO. This study shows that based on existing calculations, PT HK Metals Utama Tbk will certainly go bankrupt in the near future.