Abstract

In recent years performance of the construction sector is still not stable or in other words increasing fluctuations. if the company experiences unfavorable financial conditions in a certain time, it can be in a state of financial distress. The purpose of this study is to Predict Financial Distress in Construction Companies in Indonesia by comparing 2 prediction methods. This Study uses descriptive analysis by using the Z-Altman Score and Springate Model which is used to predict the financial distress of Construction companies in Indonesia. By using a purposive sampling technique obtained a sample of 8 construction companies from 13 companies in Indonesia according to the criteria. The result shown that of the 8 companies there are 4 companies both in the springate and Z-Altman Score models which are in distress conditions namely Adhi Karya, Nusa Konstruksi Enjiniring, Wijaya Karya and Waskita Karya. The results also shown that the Springate Model has good prediction accuracy that justifies their use and supports further investigation than the Z-Altman Score The results of the study provide the most appropriate method choice for the construction industry in predicting financial distress. Recommendations include using Springate Model in predicting and overcoming financial distress, but can also use other calculation methods using other variables that can predict financial distress more accurately.

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