FINANCIAL DISTRESS ANALYSIS OF FOOD AND BEVERAGE SUB SECTOR AT INDONESIAN STOCK EXCHANGE BASED ON SPRINGATE METHOD

Abstract

Abstract

Every company was founded by at least one or more persons. The more people that contribute to the formation of the company surely a lot of opinion will be considered in making a decision. But above all, they have the same thinking that is for profit. And when talking about the profits we can’t escaped ourselves of talking about financial performance of the company. Financial performance really essential for the continuance of a company. Any investor who wants to see the performance of a company can look into the financial statement of the company. Investor is essential for every company since they are one way out for companies who want to develop a product or for those company who are experiencing financial problems. There are various ways to analyze the performance and health of a company. And bankruptcy model of Springate method are one of such models. The study used descriptive method and the data used were secondary data derived from the financial report of Manufacturing Companies of Food and Beverage Sub-Sector companies of year 2008 and 2013. The analysis of Springate shows that generally all companies have good financially performance or solvent and financially sound except for 3 companies in 2008, namely: AISA, INDF, and STTP. GGRM, HMSP and WIIM are solvent and does not have financial problems as the score given are below the standard of Springate Model.

Keywords: Springate, Food and Beverage, Financial Distress