FINANCIAL DISTRESS: MODEL GROVER MANUFACTURING COMPANY IN INDONESIA
Abstract
This study aims to determine whether the Manufacturing Companies in the Basic and Chemical Industry Sector that experienced negative profits or losses for two consecutive years in the 2018-2020 period were in good health or even experienced financial distress when viewed from financial statement data using the Grover model analysis (G-Score). This study uses a quantitative descriptive method. The data used are the financial statements of each manufacturing company in the basic and chemical industry sectors that experienced negative profits or losses for two consecutive years in the 2018-2020 period in the form of balance sheets and profit/loss reports which will then be analyzed using the Grover model (G-Scores). The results showed that of the 8 basic and chemical industrial manufacturing companies that experienced negative profits or losses for two consecutive years, when viewed from the average score, there were 5 companies that were in the category of experiencing financial distress. While the other 3 companies are still in the healthy category, but 2 of them are still in an unstable condition and 1 of them shows an increase every year when viewed from the annual score.
Keywords:Financial Distress, G-Score, Manufacturing Company
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