| This study aims to predict which textile company that has the potential to bankrupt and know the causes of potential bankruptcy. The subject of this research are textile companies listed on the Indonesia Stock Exchange in 2009 and has suffered losses during 2008 and 2009, they are PT Argo Tbk, PT Century Textile Industry Tbk, PT Eratex Djaja Tbk, PT Karwell Indonesia Tbk, PT Panasia Filament Inti Tbk, and PT Teijin Indonesia Fiber Tbk. While the object of this research is financial statement of the six textile companies in 2009. Variables used in this study is the ratio of working capital to total assets (X1), the ratio of retained earnings to total assets (X2), the ratio of earnings before interest and taxes to total assets (X3), the ratio of market value of equity to book value of total debt (X4), and the ratio of sales to total assets (X5) as independent variables and the Z-score as the dependent variable. The results showed that the six companies have the potential bankruptcies and the ratio of the most influential of the small value of Z-score is the ratio of working capital to total assets (X1), the ratio of retained earnings to total assets (X2), and the ratio of earnings before interest and taxes to total assets (X3). |