Financial Health Analysis of Tyre Industry According to Altman Z-Score in the Periods Before and After the Covid-19 Pandemic A Case Study of PT Gajah Tunggal Tbk (Gjtl), Indonesia

The Covid-19 pandemic caused half of the world’s population to be placed on lockdown to stop the spread of Covid-19. The Indonesian government also issued the lockdown policy, called PSBB and PPKM. Tyre manufacturing as one of important part in automotive industries faced difficult situation in the periods. The growth of the industry can develop when the mobility of society and business continues to increase normally. However, due to the issuance of the government policy, caused the mobility of people and business activities has drastically reduced , which also means that the use of tires would also decrease. This study intended to analyze the financial health of PT Gajah Tunggal,Tbk (Gjtl), one of the biggest tyre manufacturings in Indonesia by using Altman Z-score bankruptcy approach in periods of 2019 – 2022, and showing the impact of the Covid-19 pandemic. The result can be used by the management group of the company to take any action and/or business decision in order to keep its financial performance based on shareholder’s expectation and come up with strategy in facing economic turbulence. This study further contributes by providing a comprehensive overview of financial health analysis and review the ratios contribute to corporate bankruptcy.