Analysis of Financial Ratios for Predicting Bankruptcy in SMEs Listed on PEFINDO25

Rettobjaan, Vitalia Fina Carla

doi:10.24123/jmb.v19i2.466

Cited by 2 publications

(2 citation statements)

References 6 publications

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“…Pagaddut (2021) researched on Philippine micro, small and medium enterprises to determine the influence on financial performance and those financial ratios-specifically, the debt ratio, asset turnover, and gross profit margin-have a major impact on that performance. Other similar studies done by Rettobjaan (2020) showed that bankruptcy is significantly impacted negatively by liquidity, profitability, and age. The debt arrangement significantly reduces the likelihood of bankruptcy.…”

Section: Literature Reviewmentioning

confidence: 74%

Predicting the Bankruptcy of Cement Companies in Bangladesh: A Study on Dhaka Stock Exchange

Hoque

Hossain

Saha

2022

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The financial status of a company can be measured and predicted using a variety of tools, techniques, and models like ratio analysis, vertical and horizontal analysis, etc. The objective of this study is to identify the bankruptcy position of Bangladeshi-listed cement companies. The Altman Z-Score model has been used here to assess the intensity of insolvency of Bangladeshi cement businesses with listings on Dhaka Stock Exchange (DSE) considering financial information from 2018 to 2021 using Altman Z-Score model. The data has been analyzed using Statistical Package for Social Sciences (version 28.0.1.1) and also Microsoft excel. DSE currently lists seven (07) cement companies. According to the research, Heidelberg Cement Limited and Lafarge Holcim Bangladesh Limited are in the secure region having the maximum Z value of 33.47 and the minimum Z value is 3.17. Confidence Cement Limited, Meghna Cement Limited and Crown Cement Limited in 2021 are in the grey region having the maximum Z value of 2.71 and the minimum Z value of 1.82. Aramit Cement Limited, Crown Cement Limited, and Premier Cement Mills Limited are in the bankrupt region having the Z value of less than 1.80. These three companies must outperform in sales with the improvement in operational costs to overcome bankruptcy. We found a positive correlation between all of the five independent variables and the dependent variable (Z Score).

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Section: Literature Reviewmentioning

confidence: 74%

Predicting the Bankruptcy of Cement Companies in Bangladesh: A Study on Dhaka Stock Exchange

Hoque

Hossain

Saha

2022

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“…In theory, an increase in profitability should reduce the likelihood of financial distress and failure (Chiaramonte & Casu, 2017). Rettobjaan (2020), This study aims to a study that aimed to analyze the Financial Ratio for Predicting Bankruptcy. The sample used in this study were SMEs according to PEFINDO25 period 2013 to 2017.…”

Section: Bankruptcy Risk Indicatorsmentioning

confidence: 99%

Bankruptcy Risk Indicators and Financial Reporting Timeliness: The Case of Companies Listed at Nairobi Securities Exchange, Kenya

Kogei

Jagongo

2021

IJFA

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Purpose: The study sought to investigate effect of bankruptcy risk indicators on financial reporting timeliness of listed companies in Kenya. Materials and Methods: The study adopted a desktop methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library Results: The results revealed that the studies done had conceptual framework gap. The study also found out that the study had geographical gap because they were not conducted in Kenya and also had different methodological gap. Unique contribution to theory, practice and policy: The findings of the study add to the databank of knowledge on the effect of bankruptcy risk on the timeliness of financial reporting of listed on NSE which propels further discussion on the subject. The findings will provide useful insights to corporate executives on bankruptcy risk attributes that have a bearing on financial reporting for their implementation. The findings of the study inform investors on bankruptcy risk indicators to look into that contribute to timeliness of financial reporting. This information is very useful to investors when choosing in which listed companies to invest their money. Finally, the findings of the study inform the regulator (CMA) the timeliness of financial reporting of companies listed on NSE in Kenya. This information forms a base on policy formulation in search of measures that can protect and improve timely financial reporting in corporate world to enhance market efficiencies.

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Analysis of Financial Ratios for Predicting Bankruptcy in SMEs Listed on PEFINDO25

Cited by 2 publications

References 6 publications

Predicting the Bankruptcy of Cement Companies in Bangladesh: A Study on Dhaka Stock Exchange

Predicting the Bankruptcy of Cement Companies in Bangladesh: A Study on Dhaka Stock Exchange

Bankruptcy Risk Indicators and Financial Reporting Timeliness: The Case of Companies Listed at Nairobi Securities Exchange, Kenya

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