scholarly journals Analysis on the Performance of Technology Companies with Z-score Model

2018 ◽  
Vol 7 (4) ◽  
pp. 633-639
Author(s):  
Lam Weng Hoe ◽  
Yeoh Hong Beng ◽  
Lam Weng Siew ◽  
Chen Jia Wai
Keyword(s):  
Organizational Performance ◽  
Financial Distress ◽  
Dominant Factor ◽  
Z Score ◽  
Financial Ratio ◽  
Technology Sector ◽  
Financial Failure ◽  
Distress Level ◽  
Information And Communication ◽  
Score Model

Local technology sector plays a significant role in information and communication technology (ICT) based innovations and applications which enhance organizational performance as well as national economic growth and labor productivity. In this paper, financial performance of the listed Malaysia companies in technology sector is analyzed and evaluated. Altman’s Z-score model is proposed due to its robustness in determining companies’ financial distress level using five financial ratios as variables. The computed Z-score values classify the financial status of the companies into distress, grey and safe zones. This study investigates the financial data of 23 listed technology-based companies in the Main Market of Bursa Malaysia over the period of 2013 to 2017. The findings reveal that the percentage of safe zone companies increase throughout the five years whereas distress zone companies decline. It is concluded that financial ratio for market value of equity to total liabilities is the dominant factor that directly influences the level of financial distress among these technology-based companies in Malaysia. These research outcomes provide an insight to investors or policy makers to develop future planning in order to avoid financial failure in local technology sector.

scholarly journals Analisis Altman Z-Core pada Perusahaan Manufaktur Sub Sektor Otomotif yang Terdaftar di Bursa Efek Indonesia

2012 ◽  
Vol 13 (2) ◽  
pp. 135-148
Author(s):  
Andreas Suhendi ◽  
Keyword(s):  
Financial Distress ◽  
Research Method ◽  
Stock Exchange ◽  
Ratio Method ◽  
Manufacturing Companies ◽  
Z Score ◽  
Financial Ratio ◽  
Analysis Techniques ◽  
Score Model ◽  
Descriptive Method

This research aims to know the financial performance of companies with the Altman Z-Score Model in the Automotive Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange in 2016-2018. The research method used in this study is a descriptive method with data analysis techniques using the financial ratio method. The results showed that PT. Astra International Tbk, PT. Astra Otoparts Tbk, PT. Gajah Tunggal Tbk and PT. Indospring Tbk is safe from the threat of bankruptcy, while the highest average Z-Score is achieved by PT Selamat Sempurna Tbk and the lowest average Z-Score is achieved by PT Indomobil Sukses International Tbk. Thus, the Company is expected to maintain company liquidity, restructure debt, minimize receivables, increase profit levels and maximize marketing in order to increase sales so that the potential for financial distress in the company can be minimized.

scholarly journals Aplikasi Data Mining Pada Analisis Financial Distress Model Altman z-score Untuk Memprediksi Potensi Kebrangkutan Pada Industri Properti Go-Public Di Indonesia

Jurnal INFORM ◽  
2019 ◽  
Vol 4 (2) ◽  
Author(s):  
Billy Montolalu
Keyword(s):  
Financial Distress ◽  
Financial Management ◽  
Financial Statements ◽  
Gray Zone ◽  
Z Score ◽  
Financial Ratio ◽  
Financial Report ◽  
Industrial Operations ◽  
Report Data ◽  
Score Model

Early thought systems are needed in companies to overcome financial difficulties that can challenge industrial operations. Altman Z Score is one model that can be used to predict financial distress in a company by analyzing the company's financial statements. This research was conducted to analyze financial distress in property companies going public using the Altman Z Score model. In this model there are 5 financial ratio indicators that are used to predict financial distress. The financial report data used is the financial statements for 2015-2016 and there are 23 companies. The results of these calculations are then clustered with Fuzzy C-Means in two, namely safe zone and gray zone. Cluster validation testing uses the Silhouetee Index with a validation value of 0.9541 which indicates that the cluster process is valid. The results of this study indicate that there is one company that is included in the cluster gray zone, namely Intiland Development Tbk. Analysis of financial ratios found that the most influential is the variable X3 where the results of profits before tax are very small can affect payment of obligations. So it's easy to bring up financial distress conditions. And for those companies that have been in the gray zone condition, they are expected to be careful in financial management to anticipate financial distress.

scholarly journals Financial Distress Prediction of Airlines Companies

2021 ◽  
Vol 5 (2) ◽  
pp. 3-15
Author(s):  
Afiruddin Tapa ◽  
Nurfarah Lyana Ahmad Razif
Keyword(s):  
Middle East ◽  
Financial Distress ◽  
Descriptive Analysis ◽  
Z Score ◽  
Financial Distress Prediction ◽  
Financial Failure ◽  
Significant Difference ◽  
Distress Prediction ◽  
Score Model ◽  
Significant Model

The purpose of this study is to compare three financial failure models: the Altman Z-Score Model, the Springate Model, and the Zmijewski Model, in terms of predicting financial difficulty among airlines in Asia and the Middle East. Based on the results of this study, it is proven by the result of the analysis done for Airlines in Asia and the Middle East that all the three models have predicted that these companies are in financial distress. But, the Altman Z-Score model is the most significant model to forecast financial distress. Although the models employ different ratios in their analyses, this study demonstrates that there is a substantial difference in the analysis of these three models. Another independent T-test demonstrates that the Altman Z-Score Model and the Zmijewski Model, as well as the Springate Model and the Zmijewski Model, have substantial differences. The study employed a descriptive and comparative analysis method, and this model was created to compare the independent variables. The Altman Z-Score model is the most significant model for predicting the financial failure of enterprises, according to the descriptive analysis in this study. While the comparison findings show a large difference between the Altman Z-Score Model and the Zmijewski Model, there is also a significant difference between the Springate Model and the Zmijewski Model. The Altman Z-Score Model and the Springate Model, on the other hand, imply that there is no significant model.

scholarly journals Financial Distress Analysis Using Altman Z-Score Model In Sharia Banking In Indonesia

2021 ◽  
Vol 10 (2) ◽  
Author(s):  
Firman Setiawan
Keyword(s):  
Financial Distress ◽  
Quantitative Data ◽  
Good Condition ◽  
Good Health ◽  
Financial Ratios ◽  
Islamic Banks ◽  
Z Score ◽  
Gray Area ◽  
Financial Failure ◽  
Score Model

This study is conducted to explain the risk of financial failure that may occur in Sharia banking which is known asfinancial distress. Quantitative data in the formof financial ratios fromseveral Islamic banks which are the object of the study were analyzed using Altman Z- score model. After analyzing it, it is known that at Bank BRI Syariah Inc, the company experienced financial distress in 2015, in the following year the company experienced improvementthus in 2016-2019, the company was in good health. Bank BTPN Syariah Inc in 2015-2019 was in a good condition, which means that there was no financial distress or was in a gray area position. Bank Syariah Mandiri Inc experienced financial distress in 2015-2019, which means that during that time the company was in a gray area position

scholarly journals Validity of Altman Z-Score Model to Predict Financial Failure: Evidence From Jordan

2018 ◽  
Vol 10 (8) ◽  
pp. 181 ◽  
Author(s):  
Sufian Al-Manaseer ◽  
Suleiman Al-Oshaibat
Keyword(s):  
Stock Exchange ◽  
Financial Statement ◽  
Insurance Companies ◽  
Z Score ◽  
Financial Reports ◽  
Financial Failure ◽  
Amman Stock Exchange ◽  
The Face ◽  
The Subject ◽  
Score Model

This paper aims to investigate the Validity of Altman z-score model to predict financial failure in insurance companies listed on Amman Stock Exchange (ASE) over the period 2011-2016. To achieve the goal of the study, the study depended on the different statistics analytical method and Multiple Linear Regression through doing the statistical analysis of the independent variables on the dependent variable related to the subject of the study through the (E-views) program in order to cover the analytical part of the study, in addition to the descriptive method through relying on books, periodicals, previous studies and financial reports of the insurance companies of the study’ sample, whether the direct or the indirect ones, to cover the theoretical part. The result of the study finds a high predictive power for Z-score model. Moreover, the findings reveal that Z-Score model could be valuable instrumental indicators for many users of financial statement such as financial managers, auditors, lenders, investors, to make right decisions in the face of financial failure.

scholarly journals Analysis of bankruptcy issues at manufacturing companies, sub-sectors of cosmetics and houseappliances registered in Indonesia Stock Exchange (IDX) year 2015-2017 using Altman Z-score

2019 ◽  
Vol 4 (01) ◽  
pp. 27
Author(s):  
Indar Khaerunnisa ◽  
Nur Anisa Rahayu
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Z Score ◽  
Marketing Performance ◽  
Grey Area ◽  
Manufacturing Company ◽  
Score Model

This research aims to figure out the level of companies bankruptcy by applying Altman Z-Score at the manufacturing companies registered in the Indonesia Stocks Exchange. The result of the research has indicated that ZScore model is applicable to detect the company’s potential bankruptcy issues, especially manufacturing company subsectors of cosmetics and houseappliances. Altman Z-Score model has classified the companies into three categories; safe, grey area and distress. Based on the result of the research, for the companies which are in the grey area category are suggested to improve their financial performance and to use the benefit of all the assets properly to get the revenue as much as possible. However, for the companies which are in the safe category are suggested to increase their performance, especially marketing performance so that they will receive bigger amount of the revenue, nevertheless, the potential of financial distress can be minimized accordingly. Keywords: manufacturing company, financial distress, Altman Z-Score.

scholarly journals Measuring Financial Distress and Predicting Corporate Bankruptcy: An Index Approach

2016 ◽  
Vol 9 (1) ◽  
pp. 33-51 ◽  
Author(s):  
Qunfeng Liao ◽  
Seyed Mehdian
Keyword(s):  
Financial Distress ◽  
Predictive Power ◽  
Predictive Accuracy ◽  
Parametric Models ◽  
Financial Ratios ◽  
Z Score ◽  
Corporate Bankruptcy ◽  
Financial Failure ◽  
Index Approach ◽  
Multivariate Discriminant

AbstractIn this paper, we follow Anderson et al. (2009) and suggest a simple approach to employ a set of financial ratios as inputs to estimate an aggregate bankruptcy index (ABI). This index is a within sample measure, ranges between 0 and 1, and ranks the firms on the basis of their relative financial distress. ABI can be used to predict the propensity of financial failure and corporate bankruptcy. For the purpose of comparison and assessment of the robustness of this index, we estimate Z-score by multivariate discriminant analysis, using the same set of financial ratios to compare the predictive accuracy of two approaches.We find that, to some extent, ABI can predict the bankruptcy of the firms more accurately than Z-score. The empirical results of the paper suggest that ABI has relatively robust predictive power and, therefore, can be applied together with other, based on parametric and non-parametric models to predict corporate bankruptcy.

scholarly journals PREDICTING FINANCIAL DISTRESS IN NURSING HOMES: AN APPLICATION OF THE ALTMAN Z-SCORE MODEL

2017 ◽  
Vol 1 (suppl_1) ◽  
pp. 185-186
Author(s):  
J. Lord ◽  
R. Weech-Maldonado ◽  
G. Davlyatov
Keyword(s):  
Nursing Homes ◽  
Financial Distress ◽  
Z Score ◽  
Score Model

scholarly journals Impak Struktur Modal, Struktur Kepemilikkan dan Karakteristik Perusahaan Terhadap Financial Distress dan Financial Health Perusahaan

2021 ◽  
Vol 23 (1) ◽  
pp. 135-149
Author(s):  
Ratnawati Raflis ◽  
Enny Arita
Keyword(s):  
Logistic Regression ◽  
Capital Structure ◽  
Financial Performance ◽  
Ownership Structure ◽  
Financial Distress ◽  
Stock Exchange ◽  
Financial Health ◽  
Z Score ◽  
Score Model ◽  
The Impact

Corona Virus Pandemic affected the world economy, including Indonesia. Many companies are out of business due to this pandemic.With the background of the conditions mentioned above, the researchers are interested in examining more deeply the variables that determine the level of financial distress and at the same time the financial health of the company. Furthermore, the variables that are used as independent variables and are thought to affect the company's financial performance are capital structure, ownership structure and company characteristics. In assessing financial performance, the Altman Z Score model is used and then to see the impact of the variables that are thought to affect the company's financial performance.The research model used is the Logistic Regression equation.Population and sample are taken from financial data of companies listed on the Indonesia Stock Exchange. Data is taken manually on the website: www.idx.co.id. And the period in this study was taken from 2015-2019. The test results prove that the Capital Structure and Ownership Structure are factors that have a significant influence on the Company's Financial Distress and Financial Health. ABSTRAK Pandemi Virus Corona berimbas pada perekonomian dunia tidak terkecuali pada perekonomian di Indonesia. Banyak perusahaan yang gulung tikar akibat pandemik ini. Dengan berlatar belakang kondisi tersebut diatas maka peneliti tertarik untuk mengkaji lebih dalam menentukkan variabel yang sangat menentukan tingkat Financial Distress dan sekaligus financial health (Kinerja Keuangan) perusahaan. Selanjutnya variabel yang di jadikan variabel independen dan di duga berpengaruh terhadap kinerja keuangan perusahaan adalah struktur modal, struktur kepemilikkan dan Kharakteristik Perusahaan. Dalam menilai kinerja keuangan maka digunakan model Altman Z Score dan selanjutnya untuk melihat dampak variabel yang di duga berpengaruh terhadap kinerja keuangan perusahaan. Model penelitian yang di pakai adalah persamaan Logistic Regression. Model ini kemudian akan di lakukan uji T , Uji F dan Uji Asumsi Klasik sebelum di gunakan dalam melihat signifikasi variabel independen terhadap variabel dependen. Populasi dan sampel diambil dari data keuangan perusahaan yang terdaftar di Bursa Efek Indonesia. Data diambil secara manual di website: www.idx.co.id. Periode pada penelitian ini diambilkan data dari tahun 2015-2019. Hasil Pengujian membuktikan bahwa Struktur Modal dan Struktur Kepemilikkan adalah faktor yang sangat berpengaruh signifikan terhadap Financial Distress dan Financial Health Perusahaan.

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