AUTOMOTIVE MANUFACTURING SEC- TOR COMPANIES LISTED IN INDONESIA STOCK EXCHANGE PERIOD 2006-2008

Athina Rezita

Abstract


The more globalization in economy cause competition
between companies is becoming increasingly stringent.
The inability of the company in anticipation of these
global developments will result in downsizing the volume
of business that will ultimately lead to bankruptcy of the
company. Z-Score is a multi-variable equation that used
by Edward Altman to predict the potential bankruptcy of
a company. In his research in 1968, Altman acquire 22
nancial ratios, 5 of which are found most contribute to
the prediction model. The ve ratios can be combined
to see the dierence in sound nancial condition with
the nancial condition of rms that have the potential
bankruptcy. This analysis is then known as the Altman
Z-Score Analysis. From the research, the authors draw
the conclusion that the size of the overall index value is
in
uenced by the ve ratios, ie the Net Working Capital
to Total Assets Ratio (X1), Retained Earning to Total
Assets Ratio (X2), Earning Before Interest and Tax to
Total Assets Ratio (X3), Market Value of Equity to Book
Value of Debt Ratio (X4), and Sales to Total Assets Ratio
(X5). There is one company that is in sound nancial
condition during the period 2006-2008, namely PT Astra
Otoparts Tbk. Then, there is one company that is in
bankruptcy-prone condition (gray area), only the period of
2008, namely PT Goodyear INDONESIA Tbk. Meanwhile,
four other companies (SUCCESSFUL INTERNATIONAL
Tbk PT Indomobil., Tbk PT MULTI PRIMA PROSPER.,
NIPRESS Tbk PT., And PRIMA ALLOY STEEL Tbk
PT.). Seriously, it threatened with bankruptcy over the
period 2006-2008. Penamaan File: 20206150

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