Analysis of Bankruptcy Predictions on Cement Industry Companies Listed on Indonesia Stock Exchange

Abstract

The objective of this study was to understand and analyze bankruptcy predictions within the cement industry companies listed on the Indonesia Stock Exchange. The research adopted a quantitative approach, utilizing secondary data to assess the probability of bankruptcy predictions. The study took place over a period of roughly two months, starting in June 2023, at the representative’s offices of PT. Indonesia Stock Exchange in Makassar, South Sulawesi. It focused on companies associated with the cement industry sub-sector listed on the Indonesian Stock Exchange and examined the financial statements of six companies from 2020 to 2022. The findings revealed that during the period from 2020 to 2022, PT. Semen Batu Raja Tbk., PT. Waskita Beton Tbk., and PT. Wijaya Karya Beton Tbk. were classified as distressed or unhealthy, indicating potential financial difficulties based on the Altman Z-score and Springate score prediction models. PT. Solusi Bangunan Indonesia Tbk. was also classified as distressed or unhealthy for the 2020-2021 period based on the same prediction models. However, in 2022, it moved into the gray area classification according to the Altman Z-score model, suggesting a healthier financial situation based on the Springate score model. Similarly, PT. Semen Indonesia Tbk. was in the gray area classification based on the Altman Z-score model for the 2020-2022 period, indicating potential financial distress according to the Springate score prediction. Finally, PT. Indocement Tunggal Perkasa Tbk. demonstrated a non-distressed or healthy classification throughout the 2020-2022 period, as per both the Altman Z-score and Springate score prediction models.