Sir, let me ask you a question. Altman z score the end result is financial distress/bankruptcy, how to relate it to the prediction of profit increase and decrease? This is my title, confused about getting into the profit, want to explain the profit prediction Comparative analysis of the Altman z score, zmijewski x score, and springate s score methods in predicting the impact of increasing and decreasing profits on the financial statements of transportation companies listed on the IDX (as of 2017 - 2020)
Very insightful and helpful video. Business school is many, MANY years back, so this was "renewed enlightenment". Thank you for this well made and instructional video!
Hi Sir. Great Video. But can I know how to do calculate the Z-score when the company have negative retained earning/negative working capital/negative sales?
Hi Gelidus! Both O-Score and Z-Score has there pros and cons, there are better models developed in recent times which are considered as better forecasters of bankruptcy. To answer your question, O-score is more accurate that Z-Score as it is considers a wide range of samples. However in the studies conducted so far, there has been no definitive answer as to which is the best one. Hope you found this useful!
@@raiseyouracumen8038 Must commend you for the insightful video. Very informative. Noted that you have coefficient variables to depict liquidity, profitability, operating efficiency, indebtedness and productivity. I am interested to learn from you especially for privately held companies - what would be best described as appropriate ranges for good ratio, average ratio and bad ratio (red flag) indicating health of the company on liquidity, profitability, operating efficiency, indebtedness and productivity.
Good informative video. However in spite of having so much of models still NPA problems in banking industries especially in PSU is not getting resolved. it is increasing day by day. Thanks to the IBC Law passed by parliament in recent times to take strict actions against big corporate defaulters. However still i believe that such banks must go through forensic audits so that manupulative people like Rana Kapoor , Chanda Kochar etc will be punished on timely basis. Last but not the least Auditors should not be appointed by companies / banks but by government like MCA, SEBI so that such types of issues will be minimized & investors will be protected.
Well said! However these models are not enforcers, rather they are enablers! For enforcing order, RBI and other regulators have started to strengthen its rules and regulations (that's the reason many frauds have been unravelling)! Also, auditors which are appointed by cos. have to perform audits as per CARO reporting under Co Act 2013 and are bound by it as well, and apart from stat audit or internal audit, RBI performs there own set of audits at such institutions! I have myself faced RBI Auditor in STFC as an internal auditor, they grill the stat auditors as well! :) I believe that statutory audit should be (and most probably will be) replaced by concurrent audit and in few years time, with the introduction of blockchain, the concept of statutory audit will be nothing but redundant...
I learned this in graduate school here in United States. Thanks for refreshing my memory.
VERY DETAIL AND INSIGHTFUL EXPLANATION. THANK YOU SO MUCH FOR UPLOADING.
You've gained new subscribers!
I learned the topic so easily, thankyou so much for this video.
Is the Z''-Score also applicable for manufacturing and nonmanufacturing companies?
Sir, let me ask you a question. Altman z score the end result is financial distress/bankruptcy, how to relate it to the prediction of profit increase and decrease? This is my title, confused about getting into the profit, want to explain the profit prediction Comparative analysis of the Altman z score, zmijewski x score, and springate s score methods in predicting the impact of increasing and decreasing profits on the financial statements of transportation companies listed on the IDX (as of 2017 - 2020)
also my titli prediction of private enterprise
How can identified compered to predicted profit or loses the business ???
Very very informative keep making videos sir
Very insightful and helpful video. Business school is many, MANY years back, so this was "renewed enlightenment". Thank you for this well made and instructional video!
which formula should be taken for co-operative banks ? please reple asap..... i am preparing a project report on altman z score
Super informative thanks!
Hi Sir. Great Video. But can I know how to do calculate the Z-score when the company have negative retained earning/negative working capital/negative sales?
I believe that will change the plus (+) or positive coefficient to a negative (-) in the equation, and thus will contribute to a reduced Z score.
Thanks for this info!
Glad you found it useful! 😃
Keep going!Great Job👍❤️
Thanks Krita!
Thank you
Bed and Bath ended up with an Altman Z Score of probably 2.3 in 1971, but by right now, 0.5 to 0.8. Very bad! :(
Sorry Bed and Bath.
Ohlson-Score ? better as Altman-Z-Score ?
Hi Gelidus! Both O-Score and Z-Score has there pros and cons, there are better models developed in recent times which are considered as better forecasters of bankruptcy. To answer your question, O-score is more accurate that Z-Score as it is considers a wide range of samples. However in the studies conducted so far, there has been no definitive answer as to which is the best one. Hope you found this useful!
@@raiseyouracumen8038 what are they?
those coefficients that you mentioned( 1.2,1.4, and so on) how to calculate them?
The coefficients are estimates.
@@raiseyouracumen8038 Must commend you for the insightful video. Very informative. Noted that you have coefficient variables to depict liquidity, profitability, operating efficiency, indebtedness and productivity. I am interested to learn from you especially for privately held companies - what would be best described as appropriate ranges for good ratio, average ratio and bad ratio (red flag) indicating health of the company on liquidity, profitability, operating efficiency, indebtedness and productivity.
De don't calculateur those figures but you do calculate A,B ..
how to find the market value of equity from balance sheet?
You need to multiply total shares outstanding and market value of shares,,
Good informative video. However in spite of having so much of models still NPA problems in banking industries especially in PSU is not getting resolved. it is increasing day by day. Thanks to the IBC Law passed by parliament in recent times to take strict actions against big corporate defaulters. However still i believe that such banks must go through forensic audits so that manupulative people like Rana Kapoor , Chanda Kochar etc will be punished on timely basis. Last but not the least Auditors should not be appointed by companies / banks but by government like MCA, SEBI so that such types of issues will be minimized & investors will be protected.
Well said! However these models are not enforcers, rather they are enablers! For enforcing order, RBI and other regulators have started to strengthen its rules and regulations (that's the reason many frauds have been unravelling)! Also, auditors which are appointed by cos. have to perform audits as per CARO reporting under Co Act 2013 and are bound by it as well, and apart from stat audit or internal audit, RBI performs there own set of audits at such institutions! I have myself faced RBI Auditor in STFC as an internal auditor, they grill the stat auditors as well! :) I believe that statutory audit should be (and most probably will be) replaced by concurrent audit and in few years time, with the introduction of blockchain, the concept of statutory audit will be nothing but redundant...
If ifs non manufacturing company but have no market value and have sales than
Can u tell me the formula
You are too fast Sir