ANALYSIS OF FINANCIAL REPORTS IN FINANCIAL DISTRESS PREDICTION WITH ALTMAN Z-SCORE AND ZMIJEWSKI METHOD ON LQ45 INDEXED COMPANIES ON BEI
Keywords:
Financial distress, Z-Score, Zmijewski and Financial PerformanceAbstract
Analysis of the influence of financial distress and financial ratios using the Altman Z-Score and Zmijewski methods. used to conduct a thorough examination of financial performance periodically over a certain period of time. so the purpose of this study is to determine how healthy a company indexed by LQ45 is by analyzing factors that affect financial distress through financial ratios and the formula equations of the Altman Z-Score and Zmijewski methods. The results of this study are that the use of the GorgonL.V or S-SCORE method is a consistent method in predicting financial distress in companies, namely by approaching sales and total assets. By making predictions about financial distress conditions, companies can identify and prove factors that can cause potential bankruptcy. Through increased sales and effective management of total assets, companies have a greater chance of obtaining optimal profits, so they can strengthen their financial position and avoid the risk of financial distress in the future.
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