Analysis of Altman Z-Score and Zmijewski Bankruptcy Prediction in Telecommunication Sub-Sectors Registered in Indonesia Stock Exchange in 2016-2018

ABSTRACT : Bankruptcy is a condition when a company suffers from insufficient funds to run its business. The initial symptoms of bankruptcy are usually characterized by financial distress experienced by each company. If the financial difficulties are not directly handled by the company, then bankruptcy will occur at the company. The purpose of this study was to determine whether telecommunications sub-sector companies in Indonesia experienced bankruptcy or not and whether there were differences in results from the bankruptcy prediction analysis model used. This research was conducted in telecommunications sub-sector companies listed on the Indonesia Stock Exchange. The number of samples taken were 5 companies, using all of the company’s annual reports for the 2016-2018 period. The analysis technique used is the Altman Z-Score and Zmijewski bankruptcy analysis model. Based on the results of the analysis found that there are sub-sector telecommunications companies that are predicted to go bankrupt either through the analysis of the Altman ZScore and Zmijewski models. This shows that there are still telecommunications companies that have not been able to manage their companies, especially in the financial sector. In addition, the results of the study also found that there were differences in analysis results obtained with the Altman Z-Score and Zmijewski models. This shows that each model has a different level of accuracy because the ratios used as variables in the analysis are different in each model.
KEYWORDS: bankruptcy; telecommunications; altman z-score model; zmijewski model