ANALYSIS OF METHODS USED TO PREDICT FINANCIAL DISTRESS POTENTIAL

Abstract

This study aims to analyze the condition of the company using the Altman Z-score and Zwijewski method in predicting bankruptcy potential in the 10 Hotels, Restaurants and Tourism subsectors listed on the Indonesia Stock Exchange. Sampling using a purposive sampling technique with 10 samples of companies subsector Hotels, Restaurants and Tourism. This type of research is descriptive with a quantitative approach. The results showed that: (1) The results of using the Altman method, in 20114–2018 in the ten companies of the Hotel, Restaurant and Tourism subsector were in the healthy, and unhealthy category, the Z-Score fluctuated ≥ 2.99 and the Z-score ≤ 1.81 where the Company will go bankrupt, as happened with the PANR and PGLI companies, but at the end of the average year, the company the company was categorized as healthy or no distress condition. (2) The results of the study use the Zmijewski X-score method that all of the Hotel, Restaurant and Tourism Subsector companies are very possible for the company's unhealthiness to be seen from its financial performance. The results of this study are expected to be a hotel, restaurant and tourism sub-sector company that can maintain its liquidity in fulfilling all of its obligations so as to attract investors and creditors. The company is expected to be able to manage assets to increase sales and generate profits.