Assessing Bankruptcy Vulnerability In Manufacturing Firm Using Altman’s Z′-Score

The manufacturing sector is pivotal to economic growth but faces significant financial risks, including bankruptcy.This study evaluates the financial health of a selected manufacturing company using Altman's Z-Score model to predict bankruptcy risk.Analyzing financial data from 2018 to 2024, the study identifies periods of stability (2019, 2022, 2024) and distress (2020, 2021, 2023).Key findings reveal that liquidity management (Working Capital/Total Assets) most significantly impacts financial stability.The study underscores the need for proactive financial strategies, including debt reduction, profitability enhancement, and investor confidence-building measures, to mitigate bankruptcy risks.The Z-Score model proves effective as an early warning tool, though its limitations such as reliance on historical data highlight the need for complementary qualitative analyses.