PREDICTING OF FINANCIAL DISTRESS IN PHARMACEUTICAL COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX)
Financial distress is a state where firms do not have enough proceeds to pay theirfinancial obligations while at maturity they become bankrupt. Generally, financial difficultiesare the main indicator of failure and give a signal of the beginning of the expectedbankruptcy. Thus, financial distress needs to be wary of for investor and companies. Thisresearch aims to differences in financial distress between the method of revision andmodification of the Altman Z-score pharmaceutical companies the period 2014-2018 and theinfluence of Net Working Capital to Total Assets (WC/TA), Retained Earning to Total Assets(RE/TA), Earning Before Interest and Tax to Total Assets (EBIT/TA), Book Value of Equity toTotal Liabilities (BVE/BVL), and Sales to Total Assets (S/TA) on Financial Distress onpharmaceutical companies listed on the IDX. This study took an observation period of fiveyears, from 2014 to 2018, where the number of samples used were 9 pharmaceuticalcompanies on the IDX. 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