Financial Distress Analysis: A Study on Company’s Bankruptcy using S-Score Model in Pakan Ternak Sub-Sector Companies Listed at Indonesian Stock

Abstract

In the midst of competition between companies, each company need to assess their
own financial performance. The ability of a company to be able to compete is determined by the
performance of the company itself.
Companies that are not able to maintain its performance will gradually displaced from the
environmental industry and will be bankrupt. In order for the survival of a company is
maintained, then the management should be able to maintain or even more spur increased
performance. Prediction towards companies bankruptcy are deemed necessary as an early
warning for companies not to fail in their performance. The method in this study is descriptive,
and Springate method of S-Score were used to analyzed the data given from companies listed in
the Pakan Ternak Sub Sector at Indonesia Stock Exchange. Results from the study showed that
in the calculation using Springate method there are two companies in the bankrupt categories
namely SIPD and MAIN in year 2014 whereas two other companies are completely solvent,
they are CPIN and JPFA based on year analysis period of 2010-2014.