Abstract.

Financial distress is a condition when a company experiences financial difficulties. Financial distress is an early warning for companies not to go bankrupt. Financial distress analysis is useful for investors, government, auditors, and company management. Financial distress can be predicted using the Altman Z-Score, Zmijewski, and Grover models. The research sample was 8 retail sub-sector companies listed on the Indonesia Stock Exchange for the period 2014-2018. The main objective of this research is to predict the financial distress of companies in the retail sub-sector and to analyze the level of prediction accuracy from the financial distress prediction model.

Keywords: Financial Distress, Bankruptcy, Altman Z-Score, Zmijewski, and Grover.