Analysis of financial difficulties in financial management with ALTMAN Z-SCORE, ZMIJEWSKI, and SPRINGATE models in small textile and apparel companies. Listed on the Indonesia Stock Exchange

Abstract

Financial difficulties are the first step experienced by a company in the bankruptcyprocess. If the company fails, many parties are harmed. Therefore, it is necessary to conduct ananalysis of financial problems or difficulties that can provide early warning for the company. Thepurpose of this study is to find out and analyze financial difficulties in financial management withthe ALTMAN Z-SCORE, ZMIJEWSKI, and SPRINGATE models in small textile and apparelcompanies listed on the Indonesia Stock Exchange (IDX) using the calculation of the AltmanZ-Score, Zmijewski, and Springate models. The research method used is quantitative descriptive research. The research population is all textile and garment subsector companies listed on the IDXas many as 25 companies. The samples were selected using a purposive sampling technique andwere obtained by 6 companies over a six-year period. The data analysis models used are the AltmanOriginal Z-Score, Zmijewski, and Springate models. This research was conducted by takingsecondary data from the Indonesia Stock Exchange website. The results of the study show thatthere are companies in the textile and garment subsector that are experiencing financial difficultiesand financial management with the model used. Zmijewski's model is the most accurate inpredicting financial difficulties with the highest accuracy of fifty percent.