ASSESSING THE CORPORATE FINANCIAL DISTRESS OF FERTILISER COMPANIES IN INDIA USING ALTMAN 'S Z-SCORE REDICTIVE MODEL Dr. Uthira. D, Associate Professor and Head, P. G. Department of Commerce, M.O.P. Vaishnav College for Women, Chennai uthirad@yahoo.com ABSTRACT The success of the agricultural sector in India is largely dependent on the fertiliser industry. The benchmark that the food industry in India has set is mainly due to the many technically competent fertiliser producing companies in the country. But over the past few years due to many challenges faced by the Industry many of the fertiliser companies have been recording huge losses, many have reduced production due to escalating costs or have shut shop, which are certainly not good signs which the Government can afford to send to the economy. A realistic understanding of the financial position in terms of where it stands in the continuum of Corporate Financial distress is imperative for all the stakeholders to assess, review and strategize bailout options. This paper focuses on assessing the level of the Financial Distress of listed Fertiliser Companies in India using Corporate Financial Distress Prediction model, Altman 's Z-Score. Key Words: Fertiliser Companies, Corporate Financial Distress Prediction, Altman 's Z-Score INTRODUCTIONc THE INDIAN FERTILISER INDUSTRY: BACKGROUND: Since agriculture is a very important sector it goes without saying that the fertiliser industry is one which the Indian economy cannot
The Hershey manufacturer and the Tootsie Roll company both are firms in confection enterprise; they specialize in a vast form of chocolate sweet products. I compared each companies for the years 2002, 2003, and 2004 towards every different and in opposition to the enterprise averages so as to make a selection about which organization investors would decide on to put money into. The comparisons I used to make this decision were ratios for liquidity, solvency, and
Economic analysis and company performance forecasting are necessary for making investment management (Hiriyappa,2008). There is lack of investment management which has exerted burden over the company to keep getting revenue for current as well as new production plants. If the new plants were set up after examination of organization’s structure and forecast of sales and revenue, then the situation would have been easier. The company mainly depends upon reports by managers who are not communicating well with each other as they are not co-operative. There is an information overload which as barrier to effectively communicate within the organization (Robbins, 2011).
The company’s Net Income faced a loss in the year 2003 and 2004 due to the fire accident and the re-establishment of his store in the new location. The profit in Net Income increased in 2005 and 2006 as he introduced soft goods and also with promotion of his store with the local gyms and running clubs. There was a loss again in 2007 Net Income as the company required a new strategy to develop the sales of soft goods as there were strong competitors. The company net-sales faced Net Loss of 0.81% in 2003 and Net income of 2.60% in
Introduction: To begin the Financial Statement Analysis Project, two companies will be analyzed and compared side by side in terms of liquidity, solvency, and likelihood of investment via common stock purchase. The first company to be reviewed is Casey’s. Casey’s is a fueling station and convenience store business located primarily in small towns that are not already services by national-chain convenience stores. Competitive competencies include low prices, convenient locations, extended hours, wide product offerings, and high-quality service. As of April 2022, there are 2,452 stores open under the name Casey’s, GoodStop, or Bucky’s.
Abstract In the United States, there have been several events that have shaped the way that our economy is currently functioning. Events such as the Great Depression in 1929 and the more recent Great Recession of 2008 have led to financial stress on large, important industries. In these difficult economic times, executive officers and policy makers must make difficult decisions about how to combat this financial stress. In particular, the banking industry in the 20’s and 30’s and the automotive industry in 2008 were struggling to stay afloat.
As defined by the Oxford Dictionary, “factory farming,” also referred to as “industrial farming,” is “a system of rearing livestock using intensive methods, by which poultry, pigs, or cattle are confined indoors under strictly controlled conditions.” Contrary to what some animal activist groups might argue, there are indeed great benefits of factory farming, including the employment of around 700,000 full- and part-time workers in the US (“Factory Farm Workers”). Other benefits of factory farming that relate to the logos appeal include its cost efficiency (for both producers and consumers) and the innovation it allows for in the food industry. On the other hand, there are many logos-related disadvantages to industrial farming as well, including
Sally’s Beauty Holding, Inc., who has a current ratio of 2.4, is quicker to turn their current asset into cash but also is not investing excess assets. Both companies are able to meet their debt obligations. On the other hand, Coty’s Inc. current liabilities exceeds their current assets revealing their current ratio to be .94. Having a ratio below one can imply that current assets are barely being covered by the current liabilities. Ulta Beauty’s debt-to-equity is estimated to be .65, which reveals Ulta Beauty to have a low risk and not using high amounts of debt to finance operations, because total liabilities is $1,001,660 and total shareholders’ equity is $1,550,218.
Introduction Australia’s oldest and one of the largest consumer electronics retailer Dick Smith Holdings (DSH) collapsed in January 2016 when its share price fell over 84% in less than 4 months. Its demise came as a shock to the industry and left more than 3000 employees jobless after closing down 393 stores in Australia and New Zealand. DSH was performing well at the stock market and expectations were high but its sudden collapse gives rise to a need to analyse reasons behind its failure to hopefully prevent such disasters in future. To effectively analyse the reasons for DSH’s failure, this essay examines various quantitative factors such as financial ratio analysis, stock market performance and Altman Z-Score bankruptcy prediction model, along with several qualitative factors such as industry challenges, weaknesses in corporate strategy and business model, accounting and regulatory issues, corporate
Thus, as Paarlberg has argued, industrial agriculture has helped reduce starvation and poverty in Africa and South-East Asia. Paarlberg’s earlier claim about increasing wheat yield in India contradicts Coline Serra’s film, in which Vandana Shiva explains that across India farmers are committing suicide at a staggering rate due to them being indebted to the fertilizer and pesticide manufacturers and the increase of diseases in their crops due to the excessive use of these chemicals. “Down to Earth”
Discuss two reasons why the government wanted to reform agriculture. The government wanted to reform agriculture because they believed that the low prices caused hunger by discouraging production and creating scarcity. The government wanted to increase production by making it a more profitable crop to grow.
Introduction: These days the environment had been affected in many ways. Humans have a huge impact on environment. Farming is one of the negative effects on the environment, especially the modern ways of farming and raising animals; this modern way is called factory farming . The environmental impact depends on the production practices of the system used by farmers. The environmental impact of agriculture involves a variety of factors from the soil, to water, the air, animal and soil diversity, people, plants, and the food itself.
As farmers have to mass produce in order to supply for the growing population today, fertilizer is essential to improve the quality and growth of the
Industrial agriculture is a form of innovative farming that refers to the industrialised production of livestock, poultry, fish, and crops. The methods of industrial agriculture are technoscientific, economic, and political (Newworldencyclopedia.org, 2018). Eric Schlosser (2002) formulated his own detailed analysis surrounding the fast food system, its food production as well as the effects it has had on the world today. In this essay, I will be outlining his critique of industrial agriculture and stating my views on the topics. I will be doing so by firstly giving a brief outline of his argument, I will then be going in-depth on the various issues Schlosser points out, namely, the health issues, environmental dilemmas, exploitation of workers,
Fertilizers remove the nutrients of the soil damaging the soil and the local environment and after being mixed with the soil, gradually reduce the fertility of the soil. In the study of (Southland) using fertilizers consists of substances and chemicals like methane, carbon dioxide, ammonia, and nitrogen, the emission of which has contributed to a great extent in the quantity of greenhouse gases present in the environment. These facts are alarming and a serious step needs to be taken as soon as possible to avoid more severe consequences. This in turn is leading to global warming and weather changes. The use of fertilizers for growth and cultivation is keeping our stomach filled for now, but then if things keep on progressing the way they are, it won’t take long to see the times where there is lack of food, water, and health.