EVALUATING FINANCIAL HEALTH OF LEADING CYCLE MANUFACTURING COMPANIES IN INDIA: A Z-SCORE APPROACH
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Date
2013
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PAU Ludhiana
Abstract
The present research was undertaken to evaluate the financial health of leading cycle manufacturing companies in India by using Z-Score approach. The study was carried out using eight years data collected from annual reports of three selected companies viz. Hero Cycles Limited, Avon Cycles Limited, Atlas Cycles Limited. The efficiency of selected companies was evaluated using efficiency ratios and the overall financial performance of the companies was examined using the liquidity, solvency and profitability ratios. The financial health and viability of selected companies was forecasted on the basis of Edward Altman Z-Score. It was found that among three companies, Atlas Cycles Limited was the most efficient company and Hero Cycles Limited showed the best overall financial performance. On the basis of Edward Altman Z-Score, all the three companies were found to be financially viable and their failure in this situation was uncertain to predict. The variability of Hero Cycles Limited was found to be lesser in its Z-Score as compared to other companies under consideration.
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