Citation:

Chandra Nurrachma Adharita, Erman Arif Sumirat, Raden Aswin Rahadi. "Analysis of the Potential of Bankruptcy, Financial Statement Manipulation, the Overall Financial Health Quality, and Disclosure of PT Unilever Indonesia Tbk" International Research Journal of Economics and Management Studies, Vol. 4, No. 4, pp. 144-154, 2025.

Abstract:

This study evaluates the financial health, bankruptcy potential, earnings manipulation risk, and financial disclosures of PT Unilever Indonesia Tbk (UNVR) for the 2020–2024 period, a combination of quantitative models and financial disclosure reviews provides comprehensive evaluation of the companies stability and transparency, The Altman Z-Score is used to evaluates the likelihood of bankruptcy risk, whereas the Beneish M-Score detects financial misstatements (manipulation), and the Piotroski F-Score to assess financial health, Findings indicate that UNVR remains in the safe zone based on the Altman Z-Score, despite a downward trend, while financially stable, continuous monitoring is necessary to mitigate future risks, The Beneish M-Score suggests a low probability of earnings manipulation, reinforcing transparency, meanwhile the Piotroski F-Score reflects moderate to strong financial health, though operational efficiency and profitability fluctuations are evident, also a review of financial disclosures highlights concerns about liquidity due to persistent negative working capital, driven by high current liabilities such as supplier debts and advertising accruals, also the Cost of Goods Sold (COGS) is significantly impacted by high procurement expenses, while Selling, General, and Administrative (SG&A) costs remain elevated, primarily due to advertising, despite declining revenues, high expenditures persist, potentially pressuring profitability, Strategic financial management is crucial to sustaining financial stability, improved working capital management, cost control, and liability monitoring are essential, while quantitative models confirm stability, financial disclosures signal emerging risks that require proactive management, future research should incorporate macroeconomic factors for a more holistic financial assessment.

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Keywords:

Financial Performance, Beneish M-Score, Piotroski F-Score, Altman Z-Score, Bankruptcy Risk, Financial Manipulation, Financial Disclosure Analysis.