Analisis Financial Distress Pada Perusahaan Otomotif Dan Komponen Yang Terdaftar Di Bursa Efek Indonesia

Abstract

This study aims to analyze the automotive and component industry sector companies listed on the IDX experiencing financial distress in the first quarter (January-March) and second quarter (April-June) 2021 using the Altman Z-Score model.

The analytical tool used is financial distress analysis with the Altman Z-Score model, whose components consist of Capital to Total Asset Ratio, Retained Earnings to Total Asset Ratio, EBIT to Total Asset Ratio, Equity Market Value to Book Value of Debt Ratio, and Sales to Total Assets Ratio.

The results showed that there were 3 companies that entered the bankruptcy criteria, 3 companies entered the non-bankrupt category, and 3 company entered the gray area criteria for the first quarter of 2021, while there were 3 companies that entered the bankruptcy criteria, 4 companies entered the criteria for not going bankrupt, and 2 the company entered the gray area criteria in the second Quarter of 2021.

Financial distress as a stage of declining financial conditions that occurred before the occurrence of bankruptcy or liquidation. Financial distress analysis is important for automotive and component sector companies listed on the Indonesia Stock Exchange, especially in the face of the Covid-19 pandemic which has the potential to affect the company's financial condition in a negative sense, where the analysis carried out can be an early detection for the company so that in the future the company's management able to carry out various strategies and policies that can assist the company in improving its financial performance.