Asian Journal of Research in Banking and Finance
  • Year: 2013
  • Volume: 3
  • Issue: 7

Financial measurees using z-score with reference to KBD sugars

  • Author:
  • T. Sobhba Rani
  • Total Page Count: 9
  • Page Number: 73 to 81

Principal, APGCMS, RajamPet, Kadapa, A.P

Online published on 5 July, 2013.

Abstract

The financial requirements of a business must be sufficient to meet its long-term and short-term commitments. The Z-score is a linear combination of four or five common business ratios, weighted by coefficients. To evaluate the financial conditions and performance of a company, the financial analysis needs certain yardsticks. ‘Z’-score model captures the predictive viability of a company's financial health by using a combination of financial ratios that ultimately predicts a score, which are used to determine the financial health of a company.

Keywords

financial condition, Z-score, coefficients, ratios