Study of Potential Insolvency Among Cement Sector Firms Listed on the Indonesian Stock Exchange

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DOI: https://doi.org/10.28924/2291-8639-23-2025-182
Published: Aug 1, 2025
Cite as:
Muntu Abdullah, Sullvariany Tamburaka, Meliana Rohenni Manullang, Nur Asni, Study of Potential Insolvency Among Cement Sector Firms Listed on the Indonesian Stock Exchange, Int. J. Anal. Appl., 23 (2025), 182.

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Muntu Abdullah, Sullvariany Tamburaka, Meliana Rohenni Manullang, Nur Asni

Abstract

This research endeavors to evaluate the likelihood of insolvency for cement manufacturing businesses registered on the Indonesian stock exchange. The unpredictability of the business climate has an effect on the performance of manufacturing firms. This can have repercussions for the possibility of cement sub-sector manufacturing companies going bankrupt. In order to anticipate the potential bankruptcy of a company, financial ratio information can provide signals to investors, analysts, creditors, and company management. For this study, secondary data were obtained by downloading them from the website of the Indonesian stock market. For the purpose of determining whether or not cement subsector manufacturing companies are at risk of going bankrupt, the Almant Z-score statistical method is utilized.  Based on the findings, it was determined that PT Indocement Tunggal Perkasa Tbk and PT Semen Batu raja Tbk were among the companies that were classified as being in a stable zone. There was a vulnerable zone or a gray region in which PT Semen Indonesia (Persero) Tbk was operating. The remaining companies, namely PT Solusi Bangun Indonesia Tbk, PT Waskita Beton Precast Tbk, PT Waskita Karya (Persero) Tbk, and PT Wijaya Karya Beton Tbk, are on the verge of defaulting on their financial obligations. This research contributes to strengthening signaling theory and previous research and provides useful information to investors, creditors, analysts, government, company management regarding the threat of potential bankruptcy of manufacturing companies. So that interested parties can take strategic steps in providing warnings for manufacturing companies that are facing financial problems on the Indonesia Stock Exchange.

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