Abstract

Using the Random Forest Classifier algorithm, this study produces a financial crisis prediction model for technology companies listed on the Indonesia Stock Exchange. Historical financial statement data of eight technology companies were analyzed to generate financial indicators as prediction inputs. The results show that this model has an accuracy of 88%, with an increase in accuracy to 92% after resampling techniques. Important financial indicators used include liquidity, profitability, activity and leverage ratios. This research provides an effective predictive tool to identify companies at risk of financial distress, assisting financial management and investment decision-making.

Full Text
Paper version not known

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

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.