Comparative Analysis of the Altman and Zmijewski Models for Predicting Financial Distress Conditions of Textile and Garment Companies Listed on the IDX 2020-2024
Downloads
This study aims to analyze the financial health of textile and garment companies listed on the Indonesia Stock Exchange during the 2020–2024 period and compare the accuracy of two bankruptcy prediction models, the Altman Z-Score and the Zmijewski model. The study was conducted on eight companies by calculating the financial ratios of each company and then classifying them into safe, gray, or distress zones. The analysis results show that companies BELL, INDR, SSTM, and TFCO are consistently in the safe zone according to both models. Meanwhile, ARGO, HDTX, and SRIL are included in the distress category, with scores indicating a high bankruptcy risk. Company ESTI showed different results, being in the distress zone according to Altman, but showing financial improvement according to the Zmijewski model since 2021. The conclusion of this study is that the combination of the two models can provide a more comprehensive picture of a company's bankruptcy risk level and can be used as a tool in managerial decision-making and investment considerations.
Downloads
1. Irawan, I., & Fajri, M. (2021). Comparative analysis of the Altman, Springate, and Zmijewski models in predicting financial distress. Journal of Accounting, Auditing, and Accounting Information Systems, 5(2), 98–110.
2. Darmayanti, Y. (2008). Financial Statement Analysis. Padang: Bung Hatta University Press.
3. Pranita, S., & Kristanti, FT (2020). Analysis of the impacts of financial ratios on financial distress in manufacturing companies. Indonesian Journal of Accounting and Finance, 5(1), 1–10.
4. Fitriyani, N. (2022). Analysis of financial distress projections using the Zmijewski model. Journal of Accounting Research and Science, 11(4), 87–95.
5. Damayanti, LM, Nurkhin, A., & Mulyani, S. (2019). Financial distress analysis using the Altman Z-Score and Springate models. Journal of Accounting and Taxation, 20(1), 45–52.
6. Gantino, R., & Jonathan, R. (2020). Financial distress projection analysis using the Altman Z-Score and Zmijewski models. Journal of Business Accounting, 8(2), 155–168.
7. Devi, AAAA, & Merkusiwati, NKLA (2014). Comparison of Altman Z-Score and Springate model analysis in predicting the possibility of corporate bankruptcy. E-Journal of Accounting Udayana University, 6(2), 301–316.
8. Paleni, F., & Kusuma, I. (2021). Impacts of financial ratios on financial crisis using the Altman Z-Score method. Journal of Accounting Knowledge and Research, 10(2), 120–130.
9. Dahni. (2019). Estimating financial distress using the Zmijewski model. Journal of Accounting and Auditing Studies, 20(2), 109–118.
10. Ramdhan, Y. (2021). Quantitative research method and descriptive approach. Journal of Social and Humanities Research, 10(3), 233–242.
11. Sugiyono. (2022). Quantitative, Qualitative, and R&D Research Methods. Bandung: Alfabeta.
12. Hasan, MI (2020). Main Materials of Research Methodology and Its Application. Jakarta: Ghalia Indonesia.
Copyright (c) 2025 Yeasy Darmayanti, Jalinan Kristina Gulo, Fadlilah Rosyidasari
This work is licensed under a Creative Commons Attribution 4.0 International License.
