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Small and Medium Size Companies Financial Durability Altman Model Aplication

Author

Listed:
  • Chávez Milka Elena Escalera

    (Universidad Autónoma de San Luis Potosí, México)

  • Hernández Cristóbal

    (PhD student UCC Business School, Universidad Cristóbal Colón, Veracruz, México)

Abstract

In order to achieve good operation and avoid failure, a prediction analysis of the financial status can help business to plan its commercial activities. The objective of this research is to determine if medium and small companies from Tuxtepec, Oaxaca in Mexico are financially durable. The Altman Z-Score was applied. The sample has 32 Medium and small companies from Tuxtepec, Oaxaca. The results show that 3.1% of the companies are bankrupt, a 25% of them are in a gray zone and a 75% are on a safe zone. The results show that the medium and small companies from Tuxtepec, Oaxaca are financially durable.

Suggested Citation

  • Chávez Milka Elena Escalera & Hernández Cristóbal, 2018. "Small and Medium Size Companies Financial Durability Altman Model Aplication," Mediterranean Journal of Social Sciences, Sciendo, vol. 9(2), pages 9-15, March.
    • Handle: RePEc:vrs:mjsosc:v:9:y:2018:i:2:p:9-15:n:1
    DOI: 10.2478/mjss-2018-0021
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