Financial Health of Selected Fertilizer Companies in India-A Z-Model Approach

The Financial Statements indicate what happened during a particular year for which they concern. All the stakeholders are interested to know the financial position and thereby the strength of a company. Most of their concern is the success and solvency position of the company. Several tools were developed to diagnose the financial strength of a Company based on the Financial Statements. Ratio Analysis, Common Size Statements, Comparative Statement Analysis and Decision Theory etc., serve this purpose but they indicate the absolute results which are the parameters for the present position of the company. They failed to predict the future. The “Z Model” which is developed by Edward Altman, Professor in Finance at New York University predicts the future by measuring the financial health.