Prediction approach for a company liquidity using Z-score and Altman models
Joint Authors
Jabir, Khalifah H.
Khan, Aftab A.
Source
al-Dar Research Journal for Sustainability
Issue
Vol. 4, Issue 1 (30 Nov. 2019), pp.2-8, 7 p.
Publisher
Publication Date
2019-11-30
Country of Publication
United Arab Emirates
No. of Pages
7
Main Subjects
Financial and Accounting Sciences
Abstract EN
The purpose of this research is to predict the company’s failures with the help of Altman model.
To be able to predict the financial strength of a business has led to many research works.
Financial ratios are a key indicator of financial strength of a business.
Financial ratios are a tool to determine the operational & financial efficiency of business undertakings.
There exist a large number of ratios propounded by various authors.
Altman developed a z-score model using ratios as its foundation.
With the help of the Z- Score model, Altman could predict financial efficiency /Bankruptcy up to 2-3 years in advance.
The following research paper describes in detail the studies carried out by Altman to predict business bankruptcy.
Altman made regular changes to achieve the perfect equation which could predict bankruptcy.
The following research paper summarizes the research of Altman that have being made to develop the Altman Z score model.
It can be safely said that Altman’s Z score Model can be applied to modern economy to predict distress and bankruptcy one, two & three years in advance.
American Psychological Association (APA)
Jabir, Khalifah H.& Khan, Aftab A.. 2019. Prediction approach for a company liquidity using Z-score and Altman models. al-Dar Research Journal for Sustainability،Vol. 4, no. 1, pp.2-8.
https://search.emarefa.net/detail/BIM-931459
Modern Language Association (MLA)
Jabir, Khalifah H.& Khan, Aftab A.. Prediction approach for a company liquidity using Z-score and Altman models. al-Dar Research Journal for Sustainability Vol. 4, no. 1 (Nov. 2019), pp.2-8.
https://search.emarefa.net/detail/BIM-931459
American Medical Association (AMA)
Jabir, Khalifah H.& Khan, Aftab A.. Prediction approach for a company liquidity using Z-score and Altman models. al-Dar Research Journal for Sustainability. 2019. Vol. 4, no. 1, pp.2-8.
https://search.emarefa.net/detail/BIM-931459
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 7-8
Record ID
BIM-931459