Prediction bankruptcy for technology sector company using Altman’s Z-Score Model
DOI:
https://doi.org/10.15282/daam.v4i2.9686Keywords:
Altman’s Z-Score, bankruptcy, financial performance, technology sectorAbstract
The financial performance of a company is essential as it is due to external users such as creditors, investors, and customers making the best decision after investigating the company’s sustainability. This study aims to forecast the economic health and feasibility of the five technology companies in Malaysia using Altman’s Z-score model, which was chosen using the simple random sampling method by analyzing balance sheets and income statements. Findings show that the technology sector in Malaysia performed poorly in 2021, with 3 companies are in distress zone, while two companies are in the grey zones, indicating this model can be utilized as initial test for company future performances. Although this does not imply that the enterprises have bad financial stability, one should exercise caution and be aware of the risks while investing.
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