Anticipation of Efficacy of the Natural Gas Distribution Companies in Bangladesh: An Evaluation Regarding Z-Score Model

The energy and power sectors are crucial for developing the financial and socio-economic sectors of underdeveloped countries like Bangladesh. Effective gas distribution can positively impact the supply chain, power sectors, fertilizers, CNG stations, industries, and commercial users. The study’s main goal is to evaluate the overall efficacy and predict the stability and soundness of the five selected Bangladeshi natural gas distribution companies. The secondary data of ten years from annual reports have been taken purposively from selected companies and analysed with the help of SPSS Version 24. The study finds that SGCL and JGDSL’s risky financial positions depend on borrowing funds, and the rest of TGTDCL, PGCL, and KGDCL have better positions. The study also reveals significant differences in the value Z-score among the companies and performance. All companies, except KGDCL, have poor productivity and operating efficiency, indicating inefficient expense management. To improve financial health, companies should maintain sufficient current assets and pay liabilities, maintain a consistent sales margin, manage costs and expenses, overcome operational problems, evaluate projects, establish policies for maintaining a safe financial position, and report financial statements based on FRC instructions.