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  • 标题:Application of Discriminant Analysis to Diagnose the Financial Distress
  • 本地全文:下载
  • 作者:Rashmi Soni
  • 期刊名称:Theoretical Economics Letters
  • 印刷版ISSN:2162-2078
  • 电子版ISSN:2162-2086
  • 出版年度:2019
  • 卷号:09
  • 期号:04
  • 页码:1197-1209
  • DOI:10.4236/tel.2019.94077
  • 出版社:Scientific Research Publishing
  • 摘要:Prediction of bankruptcy is a critical work. This study is case based research of Ruchi Soya Ltd . to identify the financial distress with the help of last six years data and information. The bankruptcy of the organization can be predicted by using the Altman’s Z score model belonging to manufacturing and non-manufacturing and private and public limited firms. This study used discriminant analysis taken the reference of altman’s Z score model. Study used various ratios like working capital to total asset, retained earnings to total asset, earnings before interest and tax to total assets, market value of equity to book value of debt and sales to total assets. The analysis conducted on Ruchi Soya Ltd . to identify how and when company identifies the risk of failure. This is a case study method research which satisfies the use of Z score model to identify the bankruptcy of the company. The secondary data for the assessment were obtained from the financial statement of the company. This study would be used to discuss how to identify the bankruptcy if a firm with the help of Altman’s Z score model. Research on financial health using Altman’s score is very limited in Indian context. Therefore, this study focuses on applying and interpreting the financial performance of Ruchi Soya Ltd . which files bankruptcy in the year 2017.
  • 关键词:Risk;Financial Performance;Financial Distress;Altman Analysis;Discriminant Analysis
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