Analysis of Factors Causing Bankruptcy Using the Altman Z-Score Model (Case Study of PT Sepatu Bata Tbk 2019-2023)

Naura Salsabilla; Wastam Wahyu Hidayat; Supardi  Supardi

Authors

Naura Salsabilla Fakultas Ekonomi dan Bisnis, Universitas Bhayangkara Jakata Raya, Indonesia
Wastam Wahyu Hidayat Fakultas Ekonomi dan Bisnis, Universitas Bhayangkara Jakata Raya, Indonesia
Supardi Supardi Fakultas Ekonomi dan Bisnis, Universitas Bhayangkara Jakata Raya, Indonesia

Keywords:

Bankruptcy, Altman Z-Score, Analysis

Abstract

This rsearch aims to analyze the factors causing the bankruptcy of PT Sepatu Bata Tbk during the 2019-2023 period using the Altman Z-Score model. A quantitative descriptive approach with secondary data from the company's annual financial reports and supporting information from the company's official website was used in this study. The Altman Z-Score analysis results for PT Sepatu Bata Tbk show a significant decline in financial health from 2019 to 2023, shifting from a safe zone to a distress zone, indicating a high risk of bankruptcy. The main causes are internal factors such as poor working capital management (X1), continuous operating losses (X3), and an imbalanced capital structure (X4), exacerbated by a decrease in retained earnings (X2) and asset efficiency (X5). This potential bankruptcy has a broad impact on all stakeholders, including employees, suppliers, consumers, investors, creditors, as well as management and owners, thus strategic and rapid restructuring is highly necessary.

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