A Study on Financial Distress of Indian Steel Industry

Authors

Dr. Arifa Begum

Abstract

In order to assess the overall industrial situation over the study period of 5 years, from 2014 to 2018, the present study applied Altman’s Z-Score model to identify the financially strong and weak steel companies in India. Five Indian steel companies were the subject of the study. The study initially included financial ratios drawn from a variety of categories, including profitability, liquidity, solvency, and efficiency. The most crucial sign to identify between financially strong and weak organizations is profitability and efficiency ratios like return on investment, debtor turnover ratio, and fixed assets turnover ratio. Research includes Altman’s Z-Score model that can predict a firm's financial difficulty and distinguish between organizations that are healthy and those that are in financial trouble. Therefore, in order to improve return on investment, steel producers must implement appropriate debtor and fixed asset management policies within the context of India.

Keywords

Indian Steel Industry, Altman’s Z-Score Model, Financial Distress in Indian Steel Industry

A Study on Financial Distress of Indian Steel Industry. Dr. Arifa Begum. 2018. IJIRCT, Volume 4, Issue 6. Pages 134-138. https://www.ijirct.org/viewPaper.php?paperId=1806007