An Analysis of the Efficacy of the Springate Bankruptcy Model using S-Score inTextile and Garment Sub-Sector Companies Listed at Indonesian Stock Exchange

Abstract

In globalization era, business world continues to develop in accordance to the
demands of changing times. Given these developments, a company is required to be able to
adapt in order to maintain the viability of the company.
Companies must be able to survive in the fierce competition and outperform competIn
globalization era, business world continues to develop in accordance to the demands of
changing times. Given these developments, a company is required to be able to adapt in order to
maintain the viability of the company.Companies must be able to survive in the fierce
competition and outperform competing products, especially in dealing with the crises that
occur. Prediction towards companies bankruptcy are deemed necessary as an early warning for
companies not to fail in their performance. The objective of this research is to analyzed the data
given from companies listed in the Textile and Garment Sub Sector at Indonesia Stock
Exchange using method of Springate. Theory supporting research is bankruptcy prediction.
Results and conclusions showed there are three companies in the bankrupt categories namely
ARGO, INDR and SSTM in year 2014, a company namely ADMG company touched the
position of grey area, and the other one namely PBRX is in a position of the healthy company