FINANCIAL DISTRESS ASSESSMENT THROUGH ALTMAN Z-SCORE (A case study of PT. Waskita Karya Tbk spanning from 2017 to 2022) FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By FARID MAULANA Student ID: 29122042 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG 2024 Koleksi digital milik UPT Perpustakaan ITB untuk keperluan pendidikan dan penelitian i ABSTRACT FINANCIAL DISTRESS ASSESSMENT THROUGH ALTMAN Z-SCORE (A case study of PT. Waskita Karya Tbk spanning from 2017 to 2022) By FARID MAULANA Student ID: 29122042 (Master of Business Administration Program) This research aims to assess the financial distress condition of PT Waskita Karya Tbk (WSKT), a state-owned construction company in Indonesia, from 2017 to 2022 using the Altman Z-Score model. The Altman Z-Score combines financial ratios to predict the likelihood of bankruptcy. Secondary data derived from WSKT’s financial statements were analyzed quantitatively using the Z-Score formula for non-manufacturing firms. The findings indicate that WSKT has experienced significant financial distress. In 2017 and 2022, WSKT was in the Distress Zone with scores of 0.96570 and 0.78271 respectively. The company was also in distress in 2020 with a negative score of -1.12303. For 2018, 2019 and 2021, WSKT was in the Grey Zone with scores of 1.51502, 1.05679 and 1.17451. WSKT did not achieve Safe Zone status during the six years examined. Overall, 66.67% of the period reviewed falls in the Distress Zone, predicting a high bankruptcy risk for WSKT. To address this financial vulnerability, recommendations include conducting operational optimization to enhance efficiency and profitability, diversifying business portfolios to tap into promising segments, and proactively monitoring financial health using analytical models like Altman Z-Score. With disciplined implementation of strategies to rectify distressed ratios, WSKT can achieve financial stability. Keywords: Altman Z-Score, Financial Distress, Bankruptcy Prediction Koleksi digital milik UPT Perpustakaan ITB untuk keperluan pendidikan dan penelitian ii ABSTRAK PENILAIAN KESULITAN KEUANGAN MELALUI ALTMAN Z- SCORE (Studi kasus PT. Waskita Karya Tbk dari tahun 2017 hingga 2022) Oleh FARID MAULANA NIM : 29122042 (Program Studi Magister Administrasi Bisnis) Penelitian ini bertujuan untuk menilai kondisi kesulitan keuangan (financial distress) PT Waskita Karya Tbk (WSKT), sebuah perusahaan konstruksi milik negara di Indonesia, dari tahun 2017 hingga 2022 dengan menggunakan model Altman Z-Score. Altman Z-Score menggabungkan rasio keuangan untuk memprediksi kemungkinan kebangkrutan. Data sekunder yang berasal dari laporan keuangan WSKT dianalisis secara kuantitatif dengan menggunakan rumus Z-Score untuk perusahaan non-manufaktur. Temuan menunjukkan bahwa WSKT telah mengalami kesulitan keuangan yang signifikan. Pada tahun 2017 dan 2022, WSKT berada di Zona Kesulitan dengan skor 0,96570 dan 0,78271. Perusahaan juga mengalami kesulitan di tahun 2020 dengan skor negatif -1,12303.