The effectiveness of the Altman Z-Score and Springate methods in analyzing the potential for company bankruptcy
List of Authors
  • Indra Satria , Mira Munira

Keyword
  • Altman Z-Score, Springate, and Company Bankruptcy

Abstract
  • This study aims to determine the potential bankruptcy per year using the Altman Modified Z-Score and Springate methods and to determine the level of accuracy for five years using the Altman Z-Score and Springate methods in measuring the potential bankruptcy of mining companies listed on the Indonesia Stock Exchange in 2015-2019. This study uses a quantitative descriptive method based on the Altman Z-Score and Springate models which are used to predict company bankruptcy. The data source in this study is secondary data obtained by downloading through the official website of the Indonesia Stock Exchange through www.idx.co.id with the sampling technique using purposive sampling. The results showed that overall in 2015-2019 the Altman Z-Score method had a better level of accuracy, 66.49% of the actual financial situation, while the Springate method only had an accuracy rate of 59.46% to the actual financial situation. according to the Indonesia Stock Exchange.

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