Financial Health of PT Sido Muncul Tbk According to Altman Z-Score in the Period 2018 – 2022

Going concern and being sustainable in the market are the few purposes of the business. To be able to know whether a business is able to thrive in the market despite of any challenges, companies must always understand their financial performance. The company can get early indications and be ready of any financial distress and threats that might coming in the future. PT Sido Muncul Tbk will be analyzed using Altman Z-score model to understand their financial health. PT Sido Muncul Tbk (SIDO) is an herbal medicine manufacture company in Indonesia that has been listed in the Indonesia Stock Exchange (IDX). The analysis will cover the period 2018 – 2022 of the company financial statements. The result analysis of Altman Z-score model will give insights of the company’s financial strength. The score above 3 in Altman Z-score means that the company is unlikely to go bankrupt, while the score below 1.8 indicates that the company is in the danger area to be bankrupt. Between 1.8 and 3 in Altman Z-score conveys that the financial health of the company is on the critical stage.