ANALYSIS USING THE ALTMAN Z-SCORE MODEL AT PT. TIRTA MAHAKAM RESOURCES Tbk

Abstract

This study aims to analyze financial distress at PT. Tirta Mahakam Resources Tbk which is listed on the Indonesia Stock Exchange during the 2017-2021 period using the Altman Z-Score model. Data is obtained from published financial reports issued by the official website www.idx.co.id.

The type of research used in this research is quantitative research with a descriptive approach. Sampling technique with purposive Sampling is a technique chosen based on certain considerations, both expert and scientific considerations.

The results of this study indicate that in 2017-2021 the company is in a financial distress zone which will result in bankruptcy. This is because the Z-Score obtained is small, which is far from the number 2.99. Where the Z-Score value in 2017 was (0.977), in 2018 it was (0.941), in 2019 it was (0.336) and in 2020 it was (-5.810) and in 2021 the Z-Score value was obtained (-5.541). The cause of financial distress at PT. Tirta Mahakam Resources Tbk, namely due to a decrease in working capital, a decrease in total assets, a decrease in sales and the acquisition of profit and low profitability (loss).