LITERATURE STUDY ANALYSIS OF BANKRUPTCY PREDICTION IN MANUFACTURING COMPANIES

Abstract

This study analyzes the analysis of bankruptcy predictions in manufacturing companies. The method of analysis uses the study of literature. This literature study was conducted by searching scientific research articles and journals analyzing the bankruptcy predictions of these manufacturing companies through Google Scholar and Harzing Publish or Perish. Each study in a journal that uses several bankruptcy prediction models, shows that the average manufacturing company in Indonesia is in a healthy state or non-financial distress, only a few manufacturing companies are in a gray area and have the potential to go bankrupt. In many manufacturing companies, only good health is due to the good level of the company in generating sales through existing inventory. Companies that are in a gray area are mostly caused by a decrease in working capital.