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PREDICTION OF INSOLVENCY-A STUDY OF SELECT COMPANIES IN INDIAN AVIATION INDUSTRY
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Author(s):
DR. SYED KHAJA SAFIUDDIN
Vol - 8, Issue- 10 ,
Page(s) : 304 - 309
(2017 )
DOI : https://doi.org/10.32804/IRJMST
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Abstract
Financial Soundness whether it is in terms of liquidity, profitability, solvency or growth plays a significant role in any organization to meet current obligations and maintain a healthy profit earning ability from business operations. Poor financial position of the firms may lead to insolvency which has an impact not only on the stakeholders of the company but also on the economy of the country at large. There have been many developments in the field of financial management which helps to analyze the financial position of a company and in predicting the insolvency of a business concern. One such development is Altman Z-score model which is considered as an important tool for insolvency prediction.This paper is an attempt to analyze the possible insolvency of select Indian Airline Ccompanies. TwoAviation Companies in the Indian context have been selected and their Z-Score is measured. In this study detailed analysis for a period of 10 years from 2007 to 2016 is carried out. Based upon the calculated Z-score, findings and conclusion have been drawn.
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