Perpustakaan Digital ITB

The Indonesian textile industry is one of the main economic sectors that contributes to exports and employment. However, in the last decade, this sector has experienced major challenges, such as increasing textile imports from China, intense competition in the global market, and the economic impact of the COVID-19 pandemic. Many textile companies are facing financial difficulties that lead to financial distress, even bankruptcy. Therefore, an in-depth analysis is needed regarding the factors that contribute to the financial resilience of companies in this industry. This study aims to identify differences in financial ratios between textile companies that experience financial distress and those that do not, using the Altman Z-Score model. Financial data from textile companies listed on the Indonesia Stock Exchange (IDX) during the period 2014-2023 are analyzed to evaluate aspects of liquidity, profitability, solvency, operational efficiency, and market valuation. Statistical techniques such as normality test, independent t-test, and Mann-Whitney U test are used to test the significance of differences in financial ratios between the two groups of companies. The results of the study show that financial ratios such as Current Ratio, Quick Ratio, Gross Profit Margin, Return on Assets, and Times Interest Earned significantly differentiate companies experiencing financial distress from those that are not. Meanwhile, ratios such as Debt to Equity Ratio and Inventory Turnover do not show significant differences. These findings provide insights for textile industry stakeholders to focus more on crucial financial aspects in preventing bankruptcy and increasing company competitiveness in an increasingly competitive market.