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Journal of Information and Optimization Sciences

(Since 1980)
Open Access ·Peer-reviewed·ISSN (Online): 2169-0103·ISSN (Print): 0252-2667

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Monthly Journal: Publishes theoretical and applied research on topics in information and optimization sciences.

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Journal of Information and Optimization Sciences
Open Access Research Article

Altman’s Z-model an approach to predict the financial distress of selected companies of Tata Group in India

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pp. 1637–1651Vol. 45Issue 6September 2024DOI: 10.47974/JIOS-1639XML
Received:
11 Apr 2024
Published Online:
30 Sep 2024
Article type:
Research Article
Language:
EN
Article no.:
JIOS-1639
Pages:
1637–1651

Abstract

In India Z Atman’s model has very less applicability and untouched in the research area, as this model has highly successful and have more than 85 percent of success rate there is a need to utilize this model for the Indian companies. The present study is about Z Alman’s Score Model applied on four selected Tata Group companies, listed in the NSE for a study period of 2020-2022. Where the study concludes that, among the four selected companies Tata Chemicals which are reported as high financial healthiness with Z score of 2.94 which indicates that the company has strong financial standards and support and there is absolutely no scope for bankruptcy in the near future. Thereafter, Tata Steel company reported Z score of 1.86 which also indicates the company is financially doing well but there is a chance of being bankrupted. So, the company should be cautious about its existing operations and strategies. Thereafter, Tata Power company reported Z score of 1.35 which indicates it is in a very tough position where there is a need to take immediate actions to make sure the company to get it out of that situation as soon as possible. Finally, Tata Motors company reported Z score of 1.69 which indicates that it is in dangerous zone in terms of financial position there should be a huge chance of being bankrupt. So, the company should focus on rebuilding its financial structure in order to overcome the instability and financial distress. Thus, the present study concludes that, among the four companies which are selected among the Tata group three were in the safer position and the only one company was in the danger position due to pandemic affect.

Keywords

Zaltman’s’ modelTata groupFinancial distressBankruptcy

Subject Classifications

91B0591G80

References

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