摘要：One type of research ia using financial ratios, related to research benefits offinancial statements for predicting the performance of companies bankruptcy.Although a company showed satisfactory profit, the company, however, is infactfacing financial difficulties and move into bankruptcy. Altman Tool AnalysisMethod, used to predict corporate bankruptcy, can associate ratios, anddetermine the health condition of the company, and assess the company'sfinancial performance. In assessing the performance of the company. The studyconducted using data of financial statements, comprising consolidated balancesheets and consolidated statements of income, and stock prices, at two daysaverage prior to publication of the closing financial statements, on publicationof financial reports, and two days after publication of financial statements . Thepurpose of the scientific writing report is to know the financial performance andits impact on stock prices at Indofarma Firm by using the Altman Z-Scoremethod, and simple linear regression analysis. The results of the study,concluded that the Indofarma Firm, was experiencing problems related with itsfinancial condition and financial performance, and in overall condition, theFirm is be in healthy condition, and there is no significant influence of Z -scorewith stock prices. Key Words : financial ratio, financial statement, financial performance, Altman Z-score
