Unraveling the Impact of Covid-19: Financial Distress and Resilience in Indonesian Retail Giants
DOI:
https://doi.org/10.38035/dijefa.v4i3.1978Keywords:
Altman Z-score, bankruptcy, Financial distress, Financial Health AnalysisAbstract
This study aims to analyze whether PT. Matahari Department Store Tbk, PT. Hero Supermarket Tbk, PT. MAP Active Adiperkasa Tbk, and PT. Erajaya Swasembada Tbk experienced financial distress during the 2019-2021 period. The sample of these four companies was selected using purposive sampling. Data analysis using the Altman Z-score method. It was found that two companies, PT. Hero Supermarket Tbk in 2019 and 2020, with Z-scores of 2.9510 and 2.5147, and PT. Matahari Department Store Tbk in 2020-2021 with Z-scores of 2.1954 and 2.6608 are in the gray area. Between the two companies, PT. Hero Supermarket Tbk is facing financial distress in 2021 with a Z-score of 0.9288. PT. MAP Active Adiperkasa Tbk and PT. Erajaya Swasembada Tbk, is in healthy financial condition, because their Z-score is greater than 2.88. In conclusion, this study is an important financial health analysis conducted for companies operating in the Supermarket & Convenience Store, Clothing & Textile Retail, and Electronic Retail industries. The Altman Z-score has proven to be a valuable tool in identifying the risk of financial distress
References
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Zutter, C. J., & Smart, S. B. (2019). Principles of Managerial Finance. In Pearson (Fifteenth). Pearson.
Altman, E. I. (1968). The Prediction of Corporate Bankruptcy: A Discriminant Analysis. The Journal of Finance, 23(1), 193. https://doi.org/10.2307/2325319
Altman, E. I., Hotchkiss, E., & Wang, W. (2019a). A 50-Year Retrospective on Credit Risk Models, the Altman Z-Score Family of Models, and Their Applications to Financial Markets and Managerial Strategies. Corporate Financial Distress, Restructuring, and Bankruptcy, 189–216. https://doi.org/10.1002/9781119541929.ch10
Altman, E. I., Hotchkiss, E., & Wang, W. (2019b). Corporate financial distress, restructuring, and bankruptcy: analyze leveraged finance, distressed debt, and bankruptcy (Fourth). John Wiley & Sons Inc.
Altman, E. I., Hotchkiss, E., & Wang, W. (2019c). Corporate Financial Distress, Restructuring, and Bankruptcy (Analyze Leveraged Finance, Distressed Debt, and Bankruptcy) (Fourth). John Wiley & Sons, Inc.
Bank Indonesia. (2021). Bangkit dan Optimis: Bersinergi dan Inovasi Untuk Pemulihan Ekonomi. LPI-Bank Indonesia 2021.
Besley, S., & Brigham, E. (2019). CFIN?: Corporate Finance. In Cengage (sixth). Cengage Learning, Inc.
Brealey, R. A., Myers, S. C., & Allen, F. (2017). Principles of Corporate Finance (Twelefth). McGraw-Hill Education.
Brigham, E. F., & Ehrhardt, M. C. (2020). Financial Management: Theory and Practice (16th ed.). Cengage Learning, Inc.
Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management. (Fifteenth). Cengage Learning, Inc.
Cindik, Z., & Armutlulu, I. H. (2021). A revision of Altman Z-Score model and a comparative analysis of Turkish companies’ financial distress prediction. National Accounting Review, 3(2), 237–255. https://doi.org/10.3934/nar.2021012
Diana, S. R. (2018). Analisis Laporan Keuangan dan Aplikasinya (1st ed). IN Media.
Fahmi, I. (2017). Analisis Laporan Keuangan (3rd ed). Alfabeta.
Fitriani, I., & Muniarty, P. (2020). Bankruptcy Prediction Analysis Using the Altman Z-Score Method at PT Aneka Tambang (Persero) Tbk. Ilomata International Journal of Management, 1(2), 51–58. https://doi.org/10.52728/ijjm.v1i2.86
Gitman, L. J., & Zutter, C. J. (2017). Principles of Managerial Finance (Fourteenth). Pearson Education Limited.
Hanafi, I., & Supriyadi, S. G. (2018). Prediksi Financial Distress Perusahaan Manufaktur yang Terdapat di Bursa Efek Indonesia. Jurnal Ekonomi Bisnis Ekuivalensi, 4(1), 24–51.
Lewaru, T. S., & Loupatty, L. G. (2021). Prediction of Financial Distress As The Impact of The Covid-10 Pandemic on Trade, Service and Investment Companies in Indonesia Using Altman Z-Score Discriminant Analysis. International Journal of Multi Science, 2(8), 1–20.
Marginingsih, R. (2021). Financial Technology (Fintech) Dalam Inklusi Keuangan Nasional di Masa Pandemi Covid-19. Moneter - Jurnal Akuntansi Dan Keuangan, 8(1), 56–64. https://doi.org/10.31294/moneter.v8i1.9903
Marginingsih, R. (2022a). Financial Distress Analysis Using The Altman Z-Score Method For Retail Companies During The Covid-19 Pandemic. Enrichment: Journal of Management, 12(2), 1796–1803. https://garuda.kemdikbud.go.id/documents/detail/2860007
Marginingsih, R. (2022b). Financial Distress Analysis Using The Altman Z-Score Method For Retail Companies During The Covid-19 Pandemic. Enrichment: Journal of Management, 12(2), 1796–1803.
Nguyen, A. H., & Nguyen, L. H. (2020). Determinants of sustainability disclosure: Empirical evidence from vietnam. Journal of Asian Finance, Economics and Business, 7(6), 73–84. https://doi.org/10.13106/JAFEB.2020.VOL7.NO6.073
Pratiwi, A. S., Satoto, S. H., Wahyu, S. B., & Suprapti, S. (2022). the Effect of Financial Ratio in the Altman Z-Score on Financial Distress. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(1), 902. https://doi.org/10.29040/ijebar.v6i1.4736
Restianti, T., & Agustina, L. (2018). The Effect of Financial Ratios on Financial Distress Conditions in Sub Industrial Sector Company. Accounting Analysis Journal, 7(1), 25–33. https://doi.org/10.15294/aaj.v5i3.18996
Ross, S. A., Westerfield, R. W., Jordan, B. D., Roberts, G. S., Pandes, J. A., & Holloway, T. A. (2019). Fundamentals of Corporate Finance (Tenth). McGraw-Hill.
Setiawan, F. (2021). Financial Distress Analysis Using Altman Z-Score Model In Sharia Banking In Indonesia. IQTISHODUNA: Jurnal Ekonomi Islam, 10(2), 105–122. https://doi.org/10.36835/iqtishoduna.v10i2.938
Sinaga, M. N., Mangindaan, J. V, & Pelleng, F. A. O. (2019). Analisis Tingkat Kebangkrutan Pada Perusahaan Asuransi Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Administrasi Bisnis, 9(2), 28–36.
Stephen Nelson, M. B. A. (2019). QuickBooks 2015 all-in-one for dummies. John Wiley & Sons, Inc.
Tahu, P. G. (2019). Predicting Financial Distress of Construction Companies in Indonesia: a Comparison of Altman Z-Score and Springate Methods. International Journal of Sustainability, Education, and Global Creative Economic (IJSEGCE), 2(2), 7–12. https://doi.org/10.1234/ijsegce.v3i1.84
Toly, A. A., Permatasari, R., & Wiranata, E. (2020). The Effect of Financial Ratio (Altman Z-Score) on Financial Distress Prediction in Manufacturing Sector in Indonesia 2016-2018. 23rd Asian Forum of Business Education(AFBE 2019), 144(Afbe 2019), 47–53. https://doi.org/10.2991/aebmr.k.200606.008
Zutter, C. J., & Smart, S. B. (2019). Principles of Managerial Finance. In Pearson (Fifteenth). Pearson.
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2023-07-28
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