Abstract
This study aims to analyze the Financial Ratio for Predicting Bankruptcy. The sample used in this study are SMEs according PEFINDO25 period 2013 to 2017. The independent variables in this study is liquidity, profitability, debt structure, solvency and activity ratio; and control variables is size and age, as well as the dependent variable is bankruptcy. The amount of sample in this study 32 companies PEFINDO25 by using purposive sampling. The method of data analysis is done by using logistic regression with SPSS version 23. The result of this research showed that liquidity, profitability and age has significant negative effect on bankruptcy. Debt structure has significant positive effect on bankruptcy. While solvency, activity ratio and size does not significantly effect on bankruptcy
Highlights
The economy is an important aspect in determining the success and welfare of the people in a country
The financial approach can find relevant financial ratios to the variables of the z-score model used in this study which are generally obtained from the company's financial statements, including profitability ratios, liquidity ratios, debt structures, solvency ratios and activity ratios to predict bankruptcy in certain time horizon (Cultrera et al 2017)
The resulting number represents a certain category that results from the calculation of the probability of occurrence of that category. The analysis of this model aims to test and analyze the influence of the independent variables, namely liquidity, profitability, debt structure, solvency, and activity ratio to the dependent variable, namely Bankruptcy in Small and Medium Enterprises (SMEs) companies listed on PEFINDO25 where the value of 0 means the company is not bankrupt or healthy and the value 1 means the company is bankrupt
Summary
The economy is an important aspect in determining the success and welfare of the people in a country. The financial approach can find relevant financial ratios to the variables of the z-score model used in this study which are generally obtained from the company's financial statements, including profitability ratios, liquidity ratios, debt structures, solvency ratios and activity ratios to predict bankruptcy in certain time horizon (Cultrera et al 2017). The resulting number represents a certain category that results from the calculation of the probability of occurrence of that category The analysis of this model aims to test and analyze the influence of the independent variables, namely liquidity, profitability, debt structure, solvency, and activity ratio to the dependent variable, namely Bankruptcy in SME companies listed on PEFINDO25 where the value of 0 means the company is not bankrupt or healthy and the value 1 means the company is bankrupt
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
