Taxation and Public Finance
Vol. 2 No. 1 (2024): DECEMBER 2024

Evaluating Precision: Comparing Altman, Springate, Zmijewski, and Grover Models in Financial Distress Prediction

Fadia, Natasya Aqilla (Unknown)
Simon, Zainal Zawir (Unknown)



Article Info

Publish Date
25 Dec 2024

Abstract

This research examines the accuracy of Altman, Springate, Zmijewski, and Grover methods in predicting financial distress at PT Garuda Indonesia Tbk during 2017–2021. The population comprises all financial reports of the company, with a saturated sampling technique applied. Data collection utilized documentation methods, and analysis involved descriptive tests and accuracy level evaluations. Results indicate that the Zmijewski method is the most accurate, with an 80% accuracy rate, followed by the Altman method at 60%, and both Springate and Grover methods at 40%. The Zmijewski method shows the highest Type I error rate at 20%, while Altman, Springate, and Grover methods have 0% Type I error rates. Regarding Type II errors, Zmijewski exhibits the highest rate at 80%, Grover at 60%, Altman at 40%, and Springate at 20%. The findings suggest that financial distress prediction methods are valuable tools for management to monitor the company's financial health and ensure operational sustainability. Adopting accurate prediction models can support decision-making and mitigate risks associated with financial distress

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Journal Info

Abbrev

tpf

Publisher

Subject

Economics, Econometrics & Finance

Description

The Taxation and Public Finance TPF is an open-access and peer-reviewed journal that publishes theoretical and empirical research and review articles on all aspects of taxation and public finance study-related topics. The journals mission is to offer a forum for the growing amount of scholarly ...