Open AccessA study on the financial soundness of Indian automobile industries using Altman Z-Score
Author(s) -
M. M. Swalih,
K.B. Adarsh,
M. M. Sulphey
Publication year - 2021
Publication title -
accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.175
H-Index - 5
eISSN - 2369-7407
pISSN - 2369-7393
DOI - 10.5267/j.ac.2020.12.001
Subject(s) - soundness , bankruptcy , financial distress , bankruptcy prediction , business , financial ratio , automotive industry , finance , accounting , financial system , engineering , computer science , programming language , aerospace engineering
Altman Z score is an effective tool for measuring a company's financial strength and the possibility of bankruptcy. In this study, the Z score formula was utilized to measure the Indian automobile industry's financial soundness. The financial data of ten automobile companies listed in the National Stoke Exchange (NSE) was taken to analyze both original and emerging market formulae of the Altman Z score. Results suggest that companies of the industry listed in the NSE are financially sound. The study concluded that the Indian automobile industry is sound and robust, and the automobile companies are not prone to financial distress or bankruptcy in the near future.