ANALYSIS OF THE POTENTIAL FOR BANKRUPTCY IN PHARMACEUTICAL COMPANIES LISTED IN STOCK EXCHANGE USING INDONESIA ALTMAN Z-SCORE METHOD

PRISKA SEPT IVIA

Abstract


The de-
velopment of nancial position have a very important mean-
ing for the company. Financial condition is a critical factor
would be measured to determine the extent to which com-
panies are able to maintain smooth operations. Financial
elements that are not healthy can lead to a bankrupt com-
pany. Analysis of Bankruptcy Altman Z-Score, is a tool
used to predict the rate of bankruptcy of a company by
calculating the value of some ratios of Working Capital to
Total Assets Ratio, Retained Earning to Total Assets Ratio,
Earning Before Interest and Taxes to Total Assets Ratio,
Market Value of Equity to Book Value of Total Liabilities
Ratio, and Sales to Total Assets Ratio. The purpose of this
paper is to know about the change of the ratio Z-score of the
ve companies and to determine the potential bankruptcy
of companies in the pharmaceutical company listed on the
Indonesia Stock Exchange the period of 2010. The results
of the study showed overall index value generated in the pe-
riod 2010 showed good results in several companies such as
PT. Merck Tbk, PT. Kalbe Farma Tbk, PT. Taisho Phar-
maceutical Tbk, and PT. Tempo Scan Pacic Tbk, which
have AAA rating. Fairly good results were also obtained in
PT. Darya Varia Laboratories with a rating of BBB Tbk,
PT. Kimia Farma Tbk with a rating of B, and PT. Pryidam
Farma Tbk with a rating of B-. There are also companies
that are still located in the gray area, such as PT. Indo-
farma Tbk with a rating of CCC-, and unfavorable results
is owned by PT. Schering Plough Indonesia Tbk and just
get a D rating is below the cut o of 1.81 which indicates
that the company is in an unhealthy nancial condition and
predicted the company has the potential to bankrupt. Man-
agement must be careful in managing aaset company's per-
formance and take corrective action to avoid bankruptcy
company or are in the area Grey Area.

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