ANALYSIS OF THE POTENTIAL OF BANKRUPTCY, FINANCIAL STATEMENT MANIPULATION, THE OVERALL FINANCIAL HEALTH QUALITY AND DISCLOSURE OF PT UNILEVER INDONESIA TBK FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By CHANDRA NURRACHMA ADHARITA Student ID: 29323107 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG March 2025 ii ABSTRACT ANALYSIS OF THE POTENTIAL OF BANKRUPTCY, FINANCIAL STATEMENT MANIPULATION, THE OVERALL FINANCIAL HEALTH QUALITY AND DISCLOSURE OF PT UNILEVER INDONESI A TBK By Chandra Nurrachma Adharita Student ID: 29323107 (Master of Business Administration Program) This study analyzes the potential of bankruptcy, financial statement manipulation, the overall financial health quality, and financial disclosures of PT Unilever Indonesia Tbk (UNVR) for the period 2020–2024, and the analysis is conducted using a combination of quantitative models and financial disclosure reviews to provide a comprehensive picture of the company’s financial condition, also the primary focus is to assess the company’s risk of bankruptcy through the Altman Z- Score model, detect possible earnings manipulation using the Beneish M-Score model, and evaluate its financial health through the Piotroski F-Score model, all of these models offer quantitative insights into the company’s financial stability, transparency, and operational efficiency, supported by an in-depth analysis of its financial disclosures. The results of the Altman Z-Score indicate that UNVR remains in the healthy zone, despite a consistent decline in its score over the analyzed period, and this suggests that while the company is currently far from bankruptcy, the downward trend should be monitored closely to avoid future financial distress, the Beneish M-Score results show that UNVR has a low probability of earnings manipulation, reflecting high transparency and credibility in its financial reporting practices, the Piotroski F-Score indicates medium to high financial health, with occasional fluctuations, driven by challenges in operational efficiency and profitability. In addition to these quantitative analyses, an in-depth review of UNVR’s financial disclosures reveals critical insights that complement the findings from the models, one notable discovery is the company’s persistently negative working capital, primarily caused by high current liabilities, including significant debts to suppliers and advertising accruals, and this condition raises concerns about the company’s short-term financial stability and liquidity management, the Cost of Goods Sold (COGS) is largely driven by high purchasing expenses, representing the largest portion of production costs, also the analysis also highlights that Marketing and Selling, General, and Administrative (SG&A) expenses are dominated by advertising expenditures, despite declining revenues during the period, these iii expenses remain disproportionately high, which may exert additional pressure on profitability and financial resources. These findings underscore the importance of strategic financial management to address the underlying risks, effective working capital management, cost optimization, and careful monitoring of liabilities are essential to maintain the company’s financial stability and sustain long-term growth, while the financial models confirm that UNVR is in a stable position, the disclosure analysis provides crucial early warning signs that require immediate attention, failure to align expenditures with declining revenue trends could affect the company’s financial resilience in the future. The study contributes to the understanding of financial performance evaluation and corporate transparency by integrating quantitative analysis with disclosure reviews, it provides practical insights for investors, management, and other stakeholders on how to interpret financial statement results more comprehensively, future research could expand on this study by incorporating external macroeconomic factors to gain a more comprehensive view of the company's financial performance. Keywords: Financial Performance, Altman Z-Score, Beneish M-Score, Piotroski F- Score, Bankruptcy Risk, Financial Manipulation, Financial Disclosure Analysis iv ABSTRAK ANALISIS POTENSI KEBANGKRUTAN, MANIPULASI LAPORAN KEUANGAN, KUALITAS KESEHATAN KEUANGAN SECARA KESELURUHAN DAN KAJIAN KETERBUKAAN INFORMASI PADA PT UNILEVER INDONESIA TBK Oleh Chandra Nurrachma Adharita 29323107 (Program Studi Magister Administrasi Bisnis) Penelitian ini menganalisis potensi kebangkrutan, manipulasi laporan keuangan, kualitas kesehatan keuangan secara keseluruhan, dan pengungkapan laporan keuangan PT Unilever Indonesia Tbk (UNVR) selama periode 2020–2024. Analisis dilakukan dengan menggabungkan model kuantitatif dan tinjauan pengungkapan laporan keuangan untuk memberikan gambaran komprehensif mengenai kondisi keuangan perusahaan. Fokus utama penelitian ini adalah menilai risiko kebangkrutan melalui model Altman Z-Score, mendeteksi kemungkinan manipulasi laba menggunakan model Beneish M-Score, serta mengevaluasi kesehatan keuangan perusahaan dengan Piotroski F-Score. Model-model tersebut memberikan wawasan kuantitatif tentang stabilitas keuangan, transparansi, serta efisiensi operasional perusahaan, yang diperkuat dengan analisis mendalam terhadap pengungkapan laporan keuangan. Hasil Altman Z-Score menunjukkan bahwa UNVR tetap berada dalam zona sehat, meskipun terdapat penurunan skor secara konsisten selama periode yang dianalisis. Hal ini menunjukkan bahwa meskipun perusahaan saat ini jauh dari risiko kebangkrutan, tren penurunan tersebut perlu diawasi dengan cermat agar tidak berkembang menjadi masalah keuangan yang serius di masa depan. Hasil Beneish M-Score menunjukkan bahwa UNVR memiliki probabilitas rendah terhadap manipulasi laba, mencerminkan tingkat transparansi dan kredibilitas yang tinggi dalam praktik pelaporan keuangannya. Sementara itu, Piotroski F-Score mengindikasikan kesehatan keuangan pada tingkat menengah hingga tinggi dengan beberapa fluktuasi yang disebabkan oleh tantangan dalam efisiensi operasional dan profitabilitas. Selain analisis kuantitatif, tinjauan mendalam terhadap pengungkapan laporan keuangan UNVR memberikan wawasan penting yang melengkapi temuan dari model kuantitatif. Salah satu penemuan utama adalah modal kerja (working capital) yang secara konsisten negatif, terutama disebabkan oleh tingginya kewajiban lancar, termasuk utang dagang kepada pemasok dan akrual iklan. Kondisi ini menimbulkan kekhawatiran terkait stabilitas keuangan jangka pendek dan pengelolaan likuiditas perusahaan. Selain itu, biaya pokok penjualan (Cost of Goods Sold/COGS) didominasi oleh biaya pembelian yang merupakan komponen terbesar dari biaya produksi. Analisis juga menunjukkan bahwa beban v pemasaran serta Selling, General, and Administrative (SG&A) didominasi oleh pengeluaran untuk iklan. Meskipun pendapatan menurun selama periode yang dianalisis, pengeluaran ini tetap tinggi secara tidak proporsional, yang dapat memberikan tekanan tambahan pada profitabilitas dan sumber daya keuangan perusahaan. Temuan ini menegaskan pentingnya strategi manajemen keuangan yang efektif untuk mengatasi risiko yang mendasarinya. Pengelolaan modal kerja yang efisien, optimalisasi biaya, dan pemantauan kewajiban secara cermat sangat penting untuk menjaga stabilitas keuangan perusahaan dan memastikan pertumbuhan jangka panjang. Meskipun model kuantitatif mengonfirmasi bahwa UNVR berada dalam posisi yang stabil, analisis pengungkapan memberikan tanda-tanda peringatan dini yang perlu segera diperhatikan. Kegagalan untuk menyelaraskan pengeluaran dengan tren penurunan pendapatan dapat memengaruhi ketahanan keuangan perusahaan di masa depan. Penelitian ini memberikan kontribusi pada pemahaman evaluasi kinerja keuangan dan transparansi perusahaan dengan mengintegrasikan analisis kuantitatif dan tinjauan pengungkapan. Studi ini menawarkan wawasan praktis bagi investor, manajemen, serta pemangku kepentingan lainnya dalam menafsirkan hasil laporan keuangan secara lebih komprehensif. Penelitian lanjutan dapat memperluas analisis ini dengan memasukkan faktor makroekonomi eksternal untuk memperoleh gambaran yang lebih luas tentang kinerja keuangan perusahaan. Keywords: Kinerja Keuangan, Altman Z-Score, Beneish M-Score, Piotroski F-Score, Risiko Kebangkrutan, Manipulasi Keuangan, Analisis Pengungkapan Keuangan DECLARATION OF NON-PLAGIARISM Plagiarism is considered as the act of dishonesty and a breach of academic ethics in which strongly against the School’s policy and regulation. I declare that materials presented in this Final Project are my own work and do not involve plagiarism. Should I do plagiarism in this Final Project, hereby I am willing to accept any consequences determined by the School. Date: Jakarta, January 24 th 2025 Name: Chandra Nurrachma Adharita Student ID: 29323107 (Chandra Nurrachma Adharita) Plagiarism is: Plagiarism is presenting someone else’s work or ideas as your own, with or without their consent, by incorporating it into your work without full acknowledgement. All published and unpublished material, whether in manuscript, printed or electronic form, is covered under this definition. Plagiarism may be intentional or reckless, or unintentional. Under the regulations for examinations, intentional or reckless plagiarism is a disciplinary offence. (Oxford, 2019) vi ANALYSIS OF THE POTENTIAL OF BANKRUPTCY, FINANCIAL STATEMENT MANIPULATION, THE OVERALL FINANCIAL HEALTH QUALITY AND DISCLOSURE OF PT UNILEVER INDONESIA TBK VALIDATION PAGE By Chandra Nurrachma Adharita Student ID: 29323107 Master of Business Administration Program Institut Teknologi Bandung Approved 24 January 2025 Supervisor Co-Supervisor (Dr. Raden Aswin Rahadi, ST, MM, MBA, RFA, CFRM, CBAP, CRMP, AWP, CRP) (Dr. Erman Arif Sumirat, S.E., M.Buss., CSA., CRP., CIB., Ak) vii FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institute of Technology, and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner, however the citation and summarization can only be proceeded upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. Statement Manipulation, The Overall Financial Health Quality and Disclosure of PT Unilever Indonesia Tbk, Masters’ Final Project, Institut Teknologi Bandung. Adharita, C.N. , (2025): Analysis of The Potential of Bankruptcy, Financial viii In the name of Allah SWT, the Most Gracious and the Most Merciful, I dedicate this final project to my beloved parents, whose endless love, prayers, and sacrifices have always been my strength and inspiration. To my friends, who lifted me up with their unwavering support, laughter, and encouragement during every step of this journey. To my supervisors, whose guidance and wisdom have shaped my understanding and helped me grow both academically and personally. Lastly, to everyone who has inspired me along the way—thank you for being a part of this journey and for reminding me to always believe in myself and trust the process. ix ACKNOWLEDGEMENTS Praise and gratitude to Allah SWT for His countless blessings, guidance, and strength that have supported me throughout this journey. His grace has enabled me to pursue and complete this final project as part of my Master’s degree at SBM ITB Jakarta. I would like to extend my heartfelt gratitude to: 1. My beloved parents and family, whose unconditional love, endless prayers, and unwavering support have been my foundation. Thank you for believing in me through every challenge and triumph. 2.