| dc.description.abstract | Financial distress sometimes could lead to bankruptcy. The objective of
this paper is making a financial distress prediction model in Indonesia using
recent financial data from 2008 until 2011. The model tested using 24 financial
ratios, which are: cash flow ratio, cash flow to total debt, current liabilities to
total asset, EBIT to fixed asset, EBIT to total liabilities, equity to long term
debt, market value of equity to book value of debt, net income to fixed asset,
net income to total debt, total debt to total asset, current asset to current
liabilities, liquid asset to current liabilities, net liquid asset to current liabilities,
working capital to total asset, EBIT to current liabilities, EBIT to sales, EBIT
to total asset, net income to sales, net income to total asset, retained earning to
total asset, expenses to sales, sales to fixed asset , sales to total asset and
working capital to sales. From the data analysis, this paper observes 28 distress
companies and the pair 28 non distress companies. Logistic regression is the
research methodology of this paper.
The result of this paper shows that there are 12 ratios that compose the
new prediction model. Those ratios are current liabilities to total asset, EBIT to
fixed asset, net income to fixed asset, current asset to current liabilities, liquid
asset to current liabilities, working capital to total asset, EBIT to sales, EBIT to
total asset, net income to sales, net income to total asset, and retained earning
to total asset. The accuracy of the model is 76.8%. | en_US |
