Model altman z-score modification sebagai early warning system untuk memprediksi financial distress UMKM di kabupaten Banyuwangi Indonesia

The aim of this study is to predict financial distress in Micro, Small, and Medium Enterprises (MSME) in Banyuwangi by using the Altman Z-score modification model from 2016 to 2019. This study involves 100 MSMEs registered in Creative House of Banyuwangi Regency. The data is obtained from the 2016 to 2018 businesses’ financial statement between 2016 until 2018. The data then was analysis by using a descriptive analysis. The results of this study show that the majority of MSMEs have financial distress. These results contribute to the mapping of the financial conditions of MSME, and hence, it becomes an early sign to mitigate bankcruptcy risk for business actors and local governments to maintain the financial performance of MSMEs. Financial stability of MSMEs might reduce the poverty gap, strengthen regional and national economies and create new job opportunities. Keyword: Financial Distress; Altman Z-Score Modification; Peringatan Dini, Prediction