Analysis Bankruptcy Banking in Indonesia : A Study Empirical on 20 Commercial Banks 2020-2025
DOI:
https://doi.org/10.38035/snefr.v2i2.1021Keywords:
Bankruptcy Banking, Altman Z-score, Ratio Finance, Indonesia, Commercial BanksAbstract
This study aim analyze level bankruptcy of 20 commercial banks in Indonesia during 2020–2025 period using the Altman Z-score model modify and identify ratio significant financial predict bankruptcy . Approach quantitative with secondary data report finance annual 20 selected banks in a way purposive from the Indonesia Stock Exchange . Variables independent covering working capital to total assets (X1), retained earnings to total assets (X2), EBIT to total assets (X3), and book value of equity to total liabilities (X4). Analysis done through calculation Z-score , zone classification ( safe , grey, distress ), and regression logistics . Average Z-score of sample banks fluctuating : decreasing sharp in 2020 due to pandemic , improving in 2021–2022, but return under pressure in 2023–2024. The proportion of banks in the distress zone decrease from 40% (2020) to 25% (2025). The ratios X3 ( EBIT/Total Assets ) and X4 ( Book Value Equity/Total Liabilities ) are proven significant . Altman Z-score model modification effective identify potential bankruptcy banking in Indonesia. Bank regulators and management need to prioritize monitoring profitability and capital structure for guard stability sector .
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