Rancang Bangun Sistem Prediksi Financial Distress Menggunakan Metode Altman Z-Score Modifikasi Pada Koperasi XYZ

Abstract

Financial distress is a condition in which a company begins to show signs of bankruptcy due to a decline in the company's financial condition. XYZ Cooperative is a savings and loan cooperative that needs to be aware of experiencing financial distress. What's more, the XYZ cooperative has experienced fluctuating asset conditions, even for profit in a certain month, it has experienced a negative or loss condition. Another problem that occurred is the covid-19 pandemic which made it difficult for people to carry out their obligations such as paying credit. This made the XYZ Cooperative's income experience a drastic decline from the previous year. Meanwhile, currently XYZ Cooperative does not have a prediction system or has never predicted financial distress in its company Based on these problems, an idea emerged to design and build a financial distress prediction system at the XYZ Cooperative using the Modified Altman Z-Score method. This model was chosen because the financial ratios used in prediction calculations are in accordance with the financial ratios of the XYZ Cooperative. The final result of this research is the construction of a prediction system using the Altman Z-Score Modification method on the desktop-based XYZ Cooperative. From the 3 years of financial reports that were tested from 2017 to 2019, the prediction results were at a safe point, namely the Z value above 2.6. The calculation results for 2017 is 8.19, 2018 is 8.11 and 2019 is 7.82. However, the predicted Z value from 2017 to 2019 has decreased, although it is not significant. The accuracy calculation obtained compares the prediction results with the real situation of the cooperative using the average comparison formula and the typer error II formula. Where from the 3 sample data tested, the results of the sample received were 3 with a data error of 0.

Tax Avoidance in Relationship on Capital Intensity, Growth Opportunities, Financial Distress and Accounting Conservatism

“…Measurement of financial distress using a modified Altman Z-Score method which can be used by all types of companies, both those that are go-public companies or those whose shares are not circulated. This measurement is in accordance with research (Manika et al, 2017;Primadani & Ariasih, 2021;Raflis & Arita, 2021) The measurement of conservatism in this study refers to the measurements used in research conducted by (Andani & Nurhayati, 2021;Fitriani & Ruchjana, 2020;Pahriyani & Aisah, 2020) as follows:…”

Performance of Sharia Public Companies During the Covid-19: An Altman Z-Score Analysis

“…In this situation, management must use caution when handling corporate assets. Meanwhile, the healthy category indicates that the company's performance is in good shape and that there are no issues with financial performance (Altman et al, 2019;Herlin et al, 2021;Primadani & Ariasih, 2021). In measuring company financial performance using the Altman Z-Score method with four parameters at the public company sharia category, these calculations use annual financial report data for 2020.…”

“…The Altman Z-Score Modified model uses only four types of ratios, excluding the X5 variable (sales to total assets), as this ratio varies significantly across businesses with varying asset quantities (Altman et al, 2013(Altman et al, , 2019Herlin et al, 2021;Primadani & Ariasih, 2021). This model is different from the two previous models, which used five ratios.…”

“…Previously, this method had three calculation models and was limited to assessing certain types of companies. Currently, a modified Altman Z-Score has been found that can determine the financial performance of all kinds of companies (Herlin et al, 2021;Primadani & Ariasih, 2021).…”