Financial Ratio Analysis of PT X for the 2020–2024 Period Using the Altman Z-Score Method and Accounts Receivable Turnover Ratio 23 12

Abstrak

This study aims to analyse the financial condition of PT X, an integrated construction-services company, for the 2020–2024 period using financial ratio analysis and the Altman Z-Score method. The study is motivated by the phenomenon of PT X recording consecutive net losses throughout the observation period despite a continuous increase in revenue, reaching approximately IDR3.2 trillion in 2024, which raises questions regarding the company's operational efficiency, receivables management, and capital structure. This research applies a descriptive method with a quantitative approach, based on secondary data in the form of the company's audited annual financial statements for 2020–2024, obtained through the official website of the Indonesia Stock Exchange and the company's official website, using a documentation technique. The analysis covers the liquidity, solvency, activity (including accounts receivable turnover), and profitability ratios, as well as the five variables of the Altman Z-Score (X1–X5). The results show that all liquidity ratios (Current Ratio, Quick Ratio, Cash Ratio) failed to reach the ideal industry standard throughout the observation period, the Debt to Asset Ratio reached 105% in 2024, and all three profitability ratios remained negative. The Accounts Receivable Turnover Ratio also did not reach the ideal standard but showed a consistent improving trend, from 2.33 times in 2020 to 10.34 times in 2024. The resulting Z-Score consistently fell within the distress zone (Z < 1.81) throughout the entire observation period. These findings are expected to help the company's management and other stakeholders assess its financial condition and take appropriate corrective measures, particularly regarding operational cost efficiency and capital structure.