Application of ALTMAN Z Score On Five Selected Industries
DOI:10.34047/MMR.2020.9101
Keywords:
Distress zone, Grey zone, Safe zone, Bankruptcy, Altman Z ScoreAbstract
The research paper talks about application of Altman Z score on five selected industries. Altman Z score is a predicting tool for bankruptcy. It helps to find whether the company is in safe, grey or distress zone. The research of this tool was on five industries i.e. FMCG-Personal care, Automobile – 2 & three wheeler, Automobile – four wheeler, Airlines, and Cement. Altman score is applied on certain selected companies of the five selected. All companies in Personal care industry are in safe zone. From Airlines industry, Spice Jet and Global Vectra are in distress zone. In Automobile – 2 & three wheeler, other than Scooter's India all other companies are in safe zone. For Automobile four wheeler industry, Tata motors is in distress zone due to its past data. And Cement industry, except for India Cement and Birla Corp, all are in safe zone. Though more research in cement industry is required, Altman Z score can be applied to more industries with listed as well as unlisted companies to get more clear view about the industry
