Comparative analysis of Z-score, Springate, and Zmijewski models in predicting financial distress conditions

Abstract

This study aims to determine: (1) whether there is a difference between the Altman model, the Springate model, the Zmijewski model, and the Ohlson model in predicting financial distress. (2) the most accurate prediction model in predicting financial pain on a pharmaceutical company listed in IDX. The type of research is comparative descriptive. The sampling method used purposive sampling with 45 data from 9 pharmaceutical companies listed in IDX. Dependent and Independent variable is measured by ratio scale. Data analysis was performed by descriptive analysis, normality test, and paired sample t-test using SPSS program. Based on the result of these study indicate that : (1) There is a significant difference between the Altman model, the Springate model, the Zmijewski model, and Ohlson model in predicting financial distress, (2) The Altman model is the most accurate prediction model in predicting financial distress. KEYWORDS: Altman, Springate, Zmijewski, Ohlson, Financial Distress