Altman Z-Score Model for Bankruptcy Forecasting of the Listed Lithuanian Agricultural Companies

Abstract

Since development in 1968, Altman's Z-score has been widely used to judge the risk of financial failure by companies in various countries, industries, and time-periods. The purpose of this paper is to apply Altman's Z-score model for bankruptcy prediction on the three listed Lithuanian agricultural companies. Agribusiness is an important industry in Lithuania and recent trends of consolidation and long-term government subsidies make evaluation of financial health of such companies important not only for the owners, but for the other stakeholders as well. The study has found that the model correctly places companies into "safe" and "grey" zones, which gives initial information for the stakeholders. Further exploratory study into the financial and non-financial factors constituting Z-score could provide additional information for forecasting firm's performance.

Support Vector Machine Methods and Artificial Neural Networks Used for the Development of Bankruptcy Prediction Models and their Comparison

“…According to Rybárová et al (2016), bankruptcy models are early warning systems based on the analysis of selected indicators able to identify a thread for financial health of a company. Kiaupaite-Grushniene (2016) states that creation of reliable models of bankruptcy prediction is essential for various decision-making processes. According to Mousavi et al (2015), frequently used models are mainly Altman Z-Score, Taffler Z-Score, and Index IN95.…”

Evaluation of the effectiveness of anti-crisis management of municipal unitary enterprises of the housing and communal sector in the territory of the Sverdlovsk region

“…где T1 = Рабочий капитал / Активы; T2 = Нераспределенная прибыль / Активы; T3 = EBIT / Активы; T4 = Собственный капитал / Обязательства; T5 = Выручка / Активы. Полученное значение в аналогично исследуется и значение менее 1,23 именуется красным и указывает на вероятность наступления несостоятельности (банкротства), значение превышающее 1,23, но не достигающее 2,9 является пограничной, именуемое серым, вероятность несостоятельности такого субъекта считается невысокой, но допустимой, значение же превышающее 2,9 считается зелёной зоной, говорящей о низкой вероятности банкротства [15]. Как можем видеть, модель проста в расчёте и даёт понятное к интерпретации итоговое интегральное значение.…”

Nakit Akış Yapısı-İşletme Yaşam Döngüsü ile Altman Z-Skorunun Birlikte Değerlendirilmesi: BİST Sürdürülebilirlik Endeksi’nde Bir Araştırma

“…Finansal sıkıntı ve iflas riskini ölçmeye yönelik yapılan çalışmaların büyük bir kısmında; finansal başarısızlığın ani bir olay değil, iflas ilan etmenin nihai başarısızlığına ulaşmadan önce, çeşitli aşamalardan geçtiği bir süreç olduğu belirtilmektedir. Bu görünüm, yöneticilerin düzeltici önlem almasının ve başarısızlığı önlemesini sağlayan erken uyarı işaretleri tespitinin önemini göstermektedir (Kiaupaite-Grushniene, 2016;Warner, 1977).…”