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Current Scenario of Financial Soundness of Textile, Pharmaceutical and Chemical Industry of Bangladesh: An Emphasize on Altman’s Z-Score for Publicly Traded Manufacturing Companies

Author

Listed:
  • Dewan Azmal Hossain
  • Saykat Chandra Roy
  • MD. Sajadul Huque Mim

Abstract

This study analyzes the financial soundness of the textile, pharmaceutical and chemical industry of Bangladesh using Altman’s Z-score. Textile, pharmaceutical and chemical industries are contributing to the overall economy of Bangladesh in a gargantuan way. That’s why it is important to analyze the financial health of these sectors to understand the current scenario so that organizations that are facing difficulties in terms of solvency or profitability may get proper attention from the authority. The key findings of this study include 66 %organizations under the Pharmaceutical and Chemical industry are in the “Safe zone”, whereas 45% of organizations under the Textile industry are in the “Safe Zone”. 28%organizations under Pharmaceutical and Chemical industry are in the “Distress zone” whereas 30% of organizations under the Textile industry are in the “Distress zone”. 25% of the organizations under the Textile industry are in the “Grey zone” whereas only 9% of the organizations under the Pharmaceutical and Chemical industry are in the “Grey zone”. This study also finds that overall, textile and pharmaceuticals and chemical industries are in safe zone where their scores are 4.43 and 4.50 respectively.

Suggested Citation

  • Dewan Azmal Hossain & Saykat Chandra Roy & MD. Sajadul Huque Mim, 2020. "Current Scenario of Financial Soundness of Textile, Pharmaceutical and Chemical Industry of Bangladesh: An Emphasize on Altman’s Z-Score for Publicly Traded Manufacturing Companies," International Journal of Science and Business, IJSAB International, vol. 4(4), pages 16-34.
    • Handle: RePEc:aif:journl:v:4:y:2020:i:4:p:16-34
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