Watch the video above to know above Altman's Z-Score Analysis
#zscore #supplychain #pakuppaivu
Altman's Z Score #analysis is used to predict the bankruptcy of a company in near future of about 2 years. This method was invented in 1968 but used by many financial entities, experts, investors to #mitigaterisk.
#AlmanZscore formula comprises of five financial ratios which requires value of #workingcapital #totalassets #totalliabilities #retainedearnings #EarningsBeforeProfitandInterest #marketcap #sales
Companies do vendor evaluation, as a part of vendor evaluation, companies need to analyse the financial strength of their vendor partners to avoid supply chain disruption at a later stage.
In this video we have shown Z-Score calculation of Mahindra & Mahindra, it's annual financial report can be taken from either of below two links,
1. https://www.mahindra.com/investors/annual-report-FY2021/index.html
2. https://www.bseindia.com/stock-share-price/mahindra--mahindra-ltd/mm/500520/financials-annual-reports/
Historic share price can be taken from BSE website - https://www.bseindia.com/stock-share-price/mahindra--mahindra-ltd/mm/500520/
Details method to calculate Z-Score and how to get the required data is shown in this video.
00:00 Introduction
01:48 About Altman's Z-Score
02:41 Altman's Z-Score - Public Manufacturing Firm
06:48 Z-Score Calculation of Mahindra & Mahindra
08:03 Collecting data for Altman's Z-Score Analysis
14:56 Calculating Score in Excel
18:15 Altman's Z-Score Formula for Private Firms
19:40 Altman's Z-Score for Non-Manufacturers
20:07 Conclusion
If you have any queries, you can post it in comment section.
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