IDEAS home Printed from https://ideas.repec.org/a/src/sbseec/v3y2021i3p309-318.html
   My bibliography  Save this article

An Assessment of Financial Stability of Textile Sector of Pakistan: An Altman Z Score Approach

Author

Listed:
  • Chandio, Peeral
  • Talpur, Arifa Bano

Abstract

Purpose: The study purpose is to examine the financial stability of Pakistani textile enterprises. Investment towards textile is crucial to boost the textile sector’s financial performance, which can be analyzed by adopting the model of Altman Z-score.Design/Methodology/Approach: The Altman Z-score approach is a method, applied to analyze the financial stability of textile firms for seven years from 2013-2014 to 2019-2020 through the annual reports of textile firms which were taken from companies’ website and PSX links. Quantitative analysis is done by MS-Excel using simple random sampling technique of secondary data of 10 firms taken from 5% listed companies.Findings:Finding of the study shows that financial performance of textile sector lies in all three zones of safe, grey and distress zones. 30% of textile sector falls in safe zone, 40% falls in grey while only 30% of textile sector of Pakistan falls in distress zone. Average result of textile sector of Pakistan is in grey zone, which shows the companies can get safe zone if they control required ratios.Implications/Originality/Value: Result shows that textile firms of Pakistan may improve financial performance and stability because it lies in grey zone by controlling their financial ratios which are the part of Altman Z-Score model.

Suggested Citation

  • Chandio, Peeral & Talpur, Arifa Bano, 2021. "An Assessment of Financial Stability of Textile Sector of Pakistan: An Altman Z Score Approach," Sustainable Business and Society in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 3(3), pages 309-318, September.
    • Handle: RePEc:src:sbseec:v:3:y:2021:i:3:p:309-318
    DOI: http://doi.org/10.26710/sbsee.v3i3.1957
    as

    Download full text from publisher

    File URL: https://publishing.globalcsrc.org/ojs/index.php/sbsee/article/view/1957/1237
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.26710/sbsee.v3i3.1957?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:src:sbseec:v:3:y:2021:i:3:p:309-318. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr Rana Muhammad Adeel Farooq (email available below). General contact details of provider: https://edirc.repec.org/data/csrcmpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.