Financial Report Analysis DHARMA DEYAUDDIN (46110016)

FINAL TEST

BANKRUPTCY PREDICTION ANALYSIS

MULTIVARIANT Z SCORE

FINAL TEST

BY:

DHARMA DEYAUDDIN

3B-D4

ACCOUNTING DEPARTMENT

POLITEKNIK NEGERI UJUNG PANDANG

MAKASSAR

2013

•       WHAT IS FINANCIAL REPORT ANALYSIS?

                Financial Report analysis is a method that the user of financial report can use searching the information about the company. With analyzing the financial statement, it means we can assess the company’s performance, in company’s internal or external

•       The Main Financial Aspects

       Liquidity Analysis

       Solvability Analysis

       Profitability Analysis

       Cash Flow Analysis

       Bankruptcy Prediction Analysis

       Risk Analysis

       Investment Analysis 

•       Bankruptcy Prediction Analysis

Bankruptcy Prediction Analysis is An Analysis that can help the company to anticipate the company’s possibility that will be bankruptcy caused by financial problems

•       Method To Predict

•       Model Z-Score

                Model Z-Score is one of the multivariat models that develop by Edward Altman. This model was developed from the research that has been conducted by Altman who choose to sample some companies are bankrupt and healthy firms in the same size and industry.

•       How To Calculate the Prediction

       X₁ : net working capital to total assets

       X₂ :retained earnings to total assets

                  X₃ :earnings before interest and    taxes to total assets

                  X₄ : book value of equity to total equity

        X₅: sales to total assets

•       FINANCIAL REPORT

       Balance Sheets

       Statement of Income

       Statement of Changes in shareholder’s equity

       Statement of cash flow

       Notes to the consolidated financial statements

•       The Procedure of Analysis

       X₁ : 0,316

       X₂ : 0,129

       X₃ : 0,053

      X₄ : 0,445

       X₅ : 0,093

•       The Procedure of Analysis

•       What It Means

•       The Conclusion Is….

       So, from the calculation that we have done, the Bankruptcy  prediction  for this company is “0,773” or include in Distress Area. It means if this company do not fix their financial problem as soon as possible, this company would be bankrupt in 3 years.