THE EFFECT OF FINANCIAL RATIO IN THE ALTMAN Z-SCORE ON FINANCIAL DISTRESS

Autor:	Ayu Suci Pratiwi, Shinta Heru Satoto, Sri Budiwati Wahyu, Suprapti Suprapti
Rok vydání:	2022
Předmět:	General Earth and Planetary Sciences General Environmental Science
Zdroj:	International Journal of Economics, Business and Accounting Research (IJEBAR). 6:902
ISSN:	2614-1280 2622-4771
DOI:	10.29040/ijebar.v6i1.4736
Popis:	The purpose of this study is to determine the effect of financial ratio in Altman Z-Score Model, that is Net Working Capital to Total Assets, Retained Earnings to Total Assets, Earnings Before Interest Tax to Total Assets, and Book Value of Equity to Total Liability on the probability of financial distress in manufacturing companies. This research uses purposive sampling method where 39 samples companies are obtained. The criteria for financial distress in this study were measured using the Altman Z-Score. The result show that Net Working Capital to Total Assets and Book Value of Equity to Total Liability has an effect on the probability of financial distress, but Retained Earnings Total Asset and Earnings Before Interest Tax to Total Assets has no effect on the probability of financial distress
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::6c45accfb054422394458c2672ece1c8 https://doi.org/10.29040/ijebar.v6i1.4736 Zobrazit plný text záznamu