FINANCIAL PERFORMANCE ANALYSIS TO FINANCIAL DISTRESS PREDICTION (ALTMAN Z-SCORE) IN BIG CONSTRUCTION SERVICES COMPANY

• Main Author: Wisnu Prabowo, Arianto
• Format: Theses
• Language: Indonesia
• Subjects: Teknik sipil
• Online Access: https://digilib.itb.ac.id/gdl/view/53286
• Institution: Institut Teknologi Bandung

The contribution of the construction sector of 10.67% to the economy in 2019, ranked as the 4th largest contributor to GDP compared to other sectors, the capability and resilience of construction business entities is an important point in maintaining economic stability from the risk of business failure. The research was compiled to determine the relationship of performance influence on financial risk with determining the financial performance indicators of construction business entities that have an influence on financial predictions with Altman Z-score, research directed at state-owned enterprises and privately owned enterprises, there are 9 BUMN and 10 BUMS. Liquidity indicators represented by current ratios into research variables that have the highest contribution value among other variables have a positive influence relationship. The debt equity ratio in the study had a negative and significant effect on the financial prediction model of distress. ROE has a positive relationship to financial distress in line with Total Asset Turnover has a positive effect relationship on Financial distress, the four variables together have an influence on financial distress. With an adjusted R squared value of 0.872 or 87.2% Current Ratio, Return of Equity, Total Asset Turnover and Debt Equity Ratio affecting Finnancial Distress, then 0.128 or 12.8% influenced by other factors outside the study.