Analysis of the Effect of Company Financial Performance on Financial Distress at Pupuk Indonesia Subsidiaries
DOI:
https://doi.org/10.37253/gfa.v7i2.7815Keywords:
Financial Performance, Financial Distress, Altman Z-Score, Springate ScoreAbstract
Purpose - This study uses the subsidiaries of PT. Pupuk Indonesia's Springate Score and Altman Z-Score to investigate the relationship between the financial performance of a business and its financial situation. Additionally, this study looks into whether the outcomes of the calculations for the Altman Z-Score and Springate Score differ significantly.
Research Method - The technique of purposeful sampling was used to gather samples from the 2017–2021 annual reports of five PT. Pupuk Indonesia subsidiaries.
Findings - The significant distinction comparing the two test results was further investigated in this study using the Mann-Whitney method.
Implication - Based on the results of computations utilizing distinct financial ratios, the Altman Z-Score and Springate Score models show that liquidity issues can be forecast. However, there is a substantial discrepancy between the two models.
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