Indonesia’s textile industry, which includes the production of fibers, yarns, fabrics, and garments, has historically served as a cornerstone of the country’s economy by providing substantial employment opportunities and generating significant foreign exchange earnings through exports. During its peak in the 1980s, the industry experienced robust growth; however, over the past few decades, it has encountered numerous challenges such as inefficient management, intensified global competition, and adverse trade policies, which have collectively contributed to a decline in performance and the closure of many textile factories. One notable example is PT Sri Rejeki Isman Tbk (Sritex), a well-established company with nearly 50 years of operational experience, which currently faces severe financial difficulties marked by mounting debt and operational struggles threatening its survival. This study aims to evaluate and forecast the financial health of Sritex using a descriptive quantitative methodology by analyzing financial data over recent years. The findings indicate that between 2021 and 2023, the company showed clear signs of financial distress, including sustained losses and a significant increase in debt levels, largely attributable to its inability to fulfill debt maturities on time. These outcomes emphasize the urgent need for the company to implement strategic financial restructuring and operational improvements to restore financial stability and ensure long-term sustainability in a highly competitive global textile market.
Keywords: Financial Distress, Altman Z-Score, Springate, Zmijewski