Financial Distress Analysis with Springate and Zmijewski Model at PT. Smartfren Telecom, Tbk and PT. Bakrie Telecom.Tbk

Financial distress is a situation where companies are experiencing financial difficulties that can lead companies to go failed. Springate and Zmijewski models are models that can be used to assess the financial distress in a company. Problems in this research lies in the object of research where PT. Smartfren Telecom, Tbk and PT. Bakrie Telecom, Tbk is a telecommunication company that uses CDMA network. This company suffered losses since 2011 but still able to stand up to now. The purpose of this study to determine financial distress at PT. Smartfren Telecom, Tbk and PT. Bakrie Telecom, Tbk using Springate and Zmijewski models for 6 periods starting from 2011-2016. The type of research data is secondary data that is financial statements of PT. Smartfren and PT. Bakrie Telecom, Tbk. Data collection method is literature study. The method of research analysis is quantitative descriptive method.Based on the results of research by using Springate model, it can be concluded that PT. Smartfren Telecom, Tbk and PT. Bakrie Telecom, Tbk experienced financial distress from 2011-2016. Financial distress caused the company suffered losses from 2011 to 2016. While using the model Zmijewski, PT. Smartfren Telecom, Tbk. experiencing financial distress in 2012 and 2015. While PT. Bakrie Telecom, Tbk. experienced financial distress in 2011. This condition is due to higher operational and non-operating expenses than on sales (overload). The Company has difficulty in controlling operating expenses. In addition, working capital is negative. This is because current assets are lower than current liabilities.