Altman Z-Score and Zmijewski X-Score Models on Performance to Assess the Bankruptcy Risk of Mining Companies on IDX Indonesia 2018-2022
DOI:
https://doi.org/10.18196/jbti.v15i3.24281Keywords:
Altman Z-Score, Bankruptcy, Financial Distress, Zmijewski X-ScoreAbstract
Financial Distress Analysis is a method used to assess the financial condition of a company. This information is crucial for the company and stakeholders in the decision-making process. This research aims to project the potential financial distress of mining companies listed on the Indonesia Stock Exchange during the 2018-2022 period, using the Altman Z-Score and Zmijewski X-Score methods on financial performance. The research applied quantitative methods, with a descriptive and a different test assessment. Data analysis was carried out using the calculation of Altman Z-Score and Zmijewski X-Score using SPSS version 27. The results showed that over five years, out of 31 mining companies, the X-Score model had a significant value of 0.00 < 0.05 on performance, indicating that this method is good for use in mining companies. In conclusion, investors are advised to consider these findings when making investment decisions in the mining sector experiencing financial distress.
References
Abdullah, M., Gulzar, I., Chaudhary, A., Tabash, M. I., Rashid, U., Naaz, I., & Ali, A. (2023). Dynamics of speed of leverage adjustment and financial distress in the Indian steel industry. Journal of Open Innovation: Technology, Market, and Complexity, 9(4), 100152. https://doi.org/10.1016/j.joitmc.2023.100152
Al-Absy, M. S. M., Almaamari, Q., Alkadash, T., & Habtoor, A. (2020). Gender Diversity and Financial Stability: Evidence from Malaysian Listed Firms. Journal of Asian Finance, Economics and Business, 7(12), 181–193. https://doi.org/10.13106/JAFEB.2020.VOL7.NO12.181
Al Zaabi, O. S. H. (2011). Potential for the application of emerging market Z‐score in UAE Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), 158–173. https://doi.org/10.1108/17538391111144498
Alarussi, A. S., & Alhaderi, S. M. (2018). Factors affecting profitability in Malaysia. Journal of Economic Studies, 45(3), 442–458. https://doi.org/10.1108/JES-05-2017-0124
Altman, E. I. (2018). Applications of Distress Prediction Models: What Have We Learned After 50 Years from the Z-Score Models? International Journal of Financial Studies, 6(3), 70. https://doi.org/10.3390/ijfs6030070
Armanious, A., & Zhao, R. (2024). Stock liquidity effect on leverage: The role of debt security, financial constraint, and risk around the global financial crisis and Covid-19 pandemic. International Review of Financial Analysis, 92, 103093. https://doi.org/10.1016/j.irfa.2024.103093
Ashraf, D. (2016). Does Shari’ah Screening Cause Abnormal Returns? Empirical Evidence from Islamic Equity Indices. Journal of Business Ethics, 134, 209–228. https://doi.org/10.1007/s10551-014-2422-2
Asif, M., Tiwari, S., Saxena, A., Chaturvedi, S., & Bhardwaj, S. (2024). A Study of Altman Z-Score Bankruptcy Model for Assessing Bankruptcy Risk of National Stock Exchange-Listed Companies. Proceedings on Engineering Sciences, 6(2), 789–806. https://doi.org/10.24874/PES06.02A.006
Aviantara, R. (2023). Scoring the financial distress and the financial statement fraud of Garuda Indonesia with «DDCC» as the financial solutions. Journal of Modelling in Management, 18(1), 1–16. https://doi.org/10.1108/JM2-01-2020-0017
Azam, A. (2024). Prediction of Financial Distress by Zmijewski’S X-Score Model in Selected Indian Iron and Steel Companies. Available at SSRN 4664050, 5(5), 1267–1278. https://doi.org/10.38142/ijesss.v5i5.1182
Bryan, D., Dinesh Fernando, G., & Tripathy, A. (2013). Bankruptcy risk, productivity and firm strategy. Review of Accounting and Finance, 12(4), 309–326. https://doi.org/10.1108/RAF-06-2012-0052
Chabachib, M., Kusmaningrum, R. H., Hersugondo, H., & Pamungkas, I. D. (2019). Financial Distress Prediction in Indonesia. WSEAS Transactions on Business and Economics, 16, 28.
Destriwanti, O., Sintha, L., Bertuah, E., & Munandar, A. (2022). Analyzing the impact of Good Corporate Governance and Financial Performance on predicting Financial Distress using the modified Altman Z Score model. American International Journal of Business Management (AIJBM), 5(2), 27–36.
Duguleană, C., Duguleană, L., & Deszke, K.-D. (2024). Financial performance and capital structure – an econometric approach for Romanian e-commerce companies during the COVID-19 pandemic. Economic Analysis and Policy, 83, 786–812. https://doi.org/10.1016/j.eap.2024.05.024
Fauzi, S. E., Sudjono, S., & Saluy, A. B. (2021). Comparative Analysis of Financial Sustainability Using the Altman Z-Score, Springate, Zmijewski and Grover Models for Companies Listed at Indonesia Stock Exchange Sub-Sector Telecommunication Period 2014 – 2019. Journal of Economics and Business, 4(1), 57–78. https://doi.org/10.31014/aior.1992.04.01.321
Harahap. (2015). Analisis Kritis atas Laporan Keuangan. PT. Rajagrafindo Persada.
Hodge, R. A. (2014). Mining company performance and community conflict: moving beyond a seeming paradox. Journal of Cleaner Production, 84, 27–33. https://doi.org/10.1016/j.jclepro.2014.09.007
Jan, A. A., Lai, F.-W., Shah, S. Q. A., Tahir, M., Hassan, R., & Shad, M. K. (2023). Does Islamic corporate governance prevent bankruptcy in Islamic banks? Implications for economic sustainability. Management & Sustainability: An Arab Review, ahead-of-p(ahead-of-print). https://doi.org/10.1108/MSAR-02-2023-0009
Kalash, I. (2023). The financial leverage–financial performance relationship in the emerging market of Turkey: the role of financial distress risk and currency crisis. EuroMed Journal of Business, 18(1), 1–20. https://doi.org/10.1108/EMJB-04-2021-0056
Kebede, T. N., Tesfaye, G. D., & Erana, O. T. (2024). Determinants of financial distress: evidence from insurance companies in Ethiopia. Journal of Innovation and Entrepreneurship, 13, 17. https://doi.org/10.1186/s13731-024-00369-5
Khan, T., Shamim, M., & Khan, M. A. (2022). Leverage strategies of Indian telecom sector: a dynamic panel data approach. Indian Growth and Development Review, 15(1), 139–164. https://doi.org/10.1108/IGDR-03-2021-0045
Liu, C. Z., Hu, X. S., & Reichelt, K. J. (2022). Does the order of claims to assets on the balance sheet reflect equity risk? China Accounting and Finance Review, 24(3), 290–322. https://doi.org/10.1108/CAFR-05-2022-0062
Manalu, S., Octavianus, R. J. N., & Kalmadara, G. S. S. (2017). Financial Distress Analysis With Altman Z-Score Approach and Zmijewski X-Score on Shipping Service Company. JAM: Jurnal Aplikasi Manajemen, 15(4), 677–682. https://doi.org/10.21776/ub.jam.2017.015.04.15
Marsenne, M., Ismail, T., Taqi, M., & Hanifah, I. A. (2024). Financial distress predictions with Altman, Springate, Zmijewski, Taffler and Grover models. Decision Science Letters, 13(1), 181–190. https://doi.org/10.5267/j.dsl.2023.10.002
Matanga, N., & Holman, G. (2024). Adapting Altman Z-score models for early warning signals: Evidence from delisted mining stocks on the Johannesburg Stock Exchange. Investment Analysts Journal, 53(3: SAFA Special Issue), 249–261. https://doi.org/10.1080/10293523.2024.2397892
Mehmood, A., & De Luca, F. (2023). Financial distress prediction in private firms: developing a model for troubled debt restructuring. Journal of Applied Accounting Research, 26(6), 205–222. https://doi.org/10.1108/JAAR-12-2022-0325
Mengstie, B., Mosisa, T., & Mosisa, T. (2024). Impact of working capital management on profitability of private commercial banks in Ethiopia. Journal of Innovation and Entrepreneurship, 13, 23. https://doi.org/10.1186/s13731-024-00379-3
Moch, R., Prihatni, R., & Buchdadi, A. D. (2019). The Effect of Liquidity, Profitability and Solvability to The Financial Distress of Manucatured Companies Listed on The Indonesia Stock Exchange (IDX) Period of Year 2015-2017. Academy of Accounting and Financial Studies Journal, 23(6), 1–16.
Mulyati, S., & Ilyasa, S. (2020). The Comparative Analysis of Altman Z-Score, Springate, Zmijewski, And Internal Growth Rate Model in Predicting the Financial Distress (Empirical Study on Mining Companies Listed on Indonesia Stock Exchange 2014-2017). KINERJA, 24(1), 82–95. https://doi.org/10.24002/kinerja.v24i1.3231
Mushafiq, M., Sindhu, M. I., & Sohail, M. K. (2023). Financial performance under influence of credit risk in non-financial firms: evidence from Pakistan. Journal of Economic and Administrative Sciences, 39(1), 25–42. https://doi.org/10.1108/JEAS-02-2021-0018
Nugrahanti, Y. W., Sutrisno, T., Rahman, A. F., & Mardiati, E. (2020). Do firm characteristics, political connection and corporate governance mechanism affect financial distress (Evidence from Indonesia). International Journal of Trade and Global Markets, 13(2), 220. https://doi.org/10.1504/IJTGM.2020.106753
Paltrinieri, A., Dreassi, A., Rossi, S., & Khan, A. (2021). Risk-adjusted profitability and stability of Islamic and conventional banks: Does revenue diversification matter? Global Finance Journal, 50, 100517. https://doi.org/10.1016/j.gfj.2020.100517
Pham Vo Ninh, B., Do Thanh, T., & Vo Hong, D. (2018). Financial distress and bankruptcy prediction: An appropriate model for listed firms in Vietnam. Economic Systems, 42(4), 616–624. https://doi.org/10.1016/j.ecosys.2018.05.002
Prokopenko, O., Kurbatova, T., Khalilova, M., Zerkal, A., Prause, G., Binda, J., Berdiyorov, T., Klapkiv, Y., Sanetra-Półgrabi, S., & Komarnitskyi, I. (2023). Impact of Investments and R&D Costs in Renewable Energy Technologies on Companies’ Profitability Indicators: Assessment and Forecast. Energies, 16(3), 1021. https://doi.org/10.3390/en16031021
Rosli, M. H. bin, Ariff, F. F. binti M., & Said, J. binti. (2018). Balanced Scorecard (BSC): Does It Really Matter in Malaysian Private Institutions of Higher Learning? Proceeding International Seminar On Accounting For Society, 1(1).
Syuhada, P., Muda, I., & Rujiman, F. (2020). Pengaruh Kinerja Keuangan dan Ukuran Perusahaan Terhadap Financial Distress Pada Perusahaan Property dan Real Estate di Bursa Efek Indonesia. Jurnal Riset Akuntansi Dan Keuangan, 8(2).
Tian, S., & Yu, Y. (2017). Financial ratios and bankruptcy predictions: An international evidence. International Review of Economics & Finance, 51, 510–526. https://doi.org/10.1016/j.iref.2017.07.025
Zmijewski, M. E. (1984). Methodological Issues Related to the Estimation of Financial Distress Prediction Models. Journal of Accounting Research, 22, 59. https://doi.org/10.2307/2490859
Downloads
Published
Issue
Section
License
Copyright (c) 2025 JBTI : Jurnal Bisnis : Teori dan Implementasi

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
JBTI : Jurnal Bisnis : Teori dan Implementasi is licensed under Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges and earlier and greater citation of published work (See The Effect of Open Access).