Abstract
This study aims to identify the dominant causes in forming a bankruptcy prediction model of retail trade service companies listed on the Indonesia Stock Exchange in the 2015-2017 period. The 2015-2017 observation period with a sample of 20 companies met the criteria as a sample. This research variable is divided into 2 namely dependent and independent variables. The dependent variable in this study is categorical data which is divided into two categories: unhealthy companies symbolized by the number 0 and healthy companies category symbolized by the number 1. The independent variables in this study are 20 financial ratios, among others, Current Ratio, Quick Ratio, Cash Ratio , Working Capital to Total Assets, Debt to Asset Ratio, Debt to Equity Ratio, Time Interest Earned, Working Capital Turn Over, Fixed Asset Turn Over, Receivable Turn Over, Total Asset Turn Over, Inventory Turn Over, Cash Turn Over, Cash Profit Margin, Operating Profit Margin, Gross Profit Margin, Return On Equity, Return On Assets, Return On Investment, Earning Per Share. The analytical method used is discriminant analysis. Discriminant Test Results using the stepwise method can be obtained variables that are selected as discriminator variables, namely the variable Debt to Equity Ratio, Return On Equity, and Earning Per Share to form discriminant functions as follows: R = - 3,197 + 0.292 Debt to Equity Ratio + 0.342 Return On Equity + 0.336 Earning Per Share The cut-off value in this study is 0 with a 75% prediction accuracy in unhealthy service companies and 73.3% in healthy service companies with an accuracy rate of 76.7% in retail trade service companies.
Highlights
Today's economy is faced with an increasingly strong digital era, so companies need to prepare strategies to face this national and international scale competition so that they can compete and operate properly companies need to develop innovation, improve performance, and pay attention to the company's financial condition. is a financial problem in a company that can't be handled
One company that is unable to survive in the retail industry services sector is 7 Eleven owned by PT Modern Sevel Indonesia, a subsidiary of PT Modern Internasional Tbk (MDRN)
Gross Profit Margin Formula: Return on Equity (ROE) The return on equity ratio shows the extent to which the company manages its own capital effectively, and measures the level of return on investment made by the capital owner or shareholder of the company
Summary
Today's economy is faced with an increasingly strong digital era, so companies need to prepare strategies to face this national and international scale competition so that they can compete and operate properly companies need to develop innovation, improve performance, and pay attention to the company's financial condition. is a financial problem in a company that can't be handled. The cash turnover ratio is measured using the following formula: Net Profit Margin (NPM) The relationship between net income after tax and sales shows management's ability to run the company until it is quite successful in recovering / controlling the price of goods / services, operating expenses, depreciation, loan interest and taxes. This ratio shows the ability of management to set aside certain margins as a reasonable compensation for company owners who still provide capital with a risk.
Sign-in/Register to view highlights & summary 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 callMore From: Dinasti International Journal of Digital Business Management
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.
