Income: Innovation Of Economics And Management
Vol. 3 No. 1 (2023): June

The Role of the Altman Z-Score Method in Predicting Corporate Bankruptcy

Raditya Prayata Putra Fai (UPN “Veteran” Jakarta)
Hana Rahmah Kamila (UPN “Veteran” Jakarta)
Faiza Ghefira Irwandi (UPN "Veteran" Jakarta)



Article Info

Publish Date
18 Aug 2024

Abstract

The bankruptcy of a company can occurs due to various factors, one of which is the company's financial inability to pay its debts to creditors. With the assistance of predictive analytical models designed by several experts, including well-known methods like the Altman Z-Score analysis, the potential for bankruptcy can be detected earlier. This analytical model aims to provide early warnings regarding possible financial issues a company might face. The objective of this research is to analyze the role of the Altman Z-Score in predicting bankruptcy in a company. The research methodology employed includes literature review and library studies. The results of this research demonstrate the significant role of the Altman Z-Score analysis method in predicting the financial condition of a company based on its financial statement ratios.

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Journal Info

Abbrev

jurnal_penelitian

Publisher

Subject

Economics, Econometrics & Finance

Description

INCOME: Innovation of Economics and Management is a scientific journal published by the Institute for Research and Community Service (LPPM), KH University. A. Wahab Hasbullah Jombang. INCOME: Innovation of Economics and Management aims to provide information from the results of research in the field ...