Business, Management & Accounting Journal
Vol. 2 No. 3 (2025): BISMA Journal November 2025

Company Bankruptcy Prediction Analysis: The Altman Z"-Score Method

Yustisia, Natali (Unknown)
Khairuna, Lainun (Unknown)



Article Info

Publish Date
26 Oct 2025

Abstract

The purpose of this study  is to analyze the effect of the ratio of Working Capital to Total Asset, Retained Earnings to Total Asset, Earnings Before Interest and Tax to Total Asset, and Market Value of Equity to Book Value of Liability on bankruptcy predictions.  The sample used was ten companies obtained by purposive sampling method from State-Owned Enterprises in the infrastructure service sector listed on the Indonesia Stock Exchange during the 2021-2023 period.  This study is a quantitative research using the logistic regression estimation method processed using the Statistical Package for Social Sciences 30 software.  The results of the study using the Wald Test found that Working Capital to Total Asset had a significant negative effect on bankruptcy prediction, while Retained Earnings to Total Asset, Earnings Before Interest and Tax to Total Asset, and Market Value of Equity to Book Value of Liability had no significant influence on bankruptcy prediction.  Inaddition, the results of the Omnibus Test of Model Coefficients mentioned that all independent variables simultaneously have a significant effect on bankruptcy prediction. 

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Journal Info

Abbrev

bisma

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Business, Management & Accounting (BISMA) Journal is a peer-reviewed journal managed and published by BacaDulu Publisher which contains the results of research and thoughts from scholars in the fields of Business, Management, and Accounting both academics and practitioners. Business, Management & ...