Research Paper
Year: 2018 | Month: August | Volume: 5 | Issue: 8 | Pages: 26-31
Evaluation of Financial Health of RCFL of India through ‘Z’ Score Model
Vikash Saini
Research Scholar, Department of ABST, University of Rajasthan, Jaipur, India
ABSTRACT
Financial health of any company can be easily evaluated through its profitability, liquidity, solvency and activity ratios. Z-Score is one of the most easiest and competent tool to evaluate the financial soundness of a company. In this paper the financial health and the chances of bankruptcy of RCFL in the near future is evaluated with the help of Z score developed by Prof. Edward I. Altman (1968). From the study of ten years (2007-08 to 2016-17), it is deduced from the analysis that profit earning capacity and short term investing capacity of RCFL is poor. The Z score value indicates that the firm is in distress zone and may go bankrupt in near future. Therefore, it requires a valiant effort of all the people involved in it like managers, employees and other stake holders.
Key words: Financial health, Z score, Bankruptcy, Fertilizers.
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