Analysis of Financial Distress in Transportation Companies With the Altman Z-Score Approach

Irawan, Agus Bambang; Prasetyo, Adi; Irawan, Dwi

doi:10.30595/raar.v1i2.11861

Cited by 2 publications

(1 citation statement)

References 5 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The stress experienced during the COVID-19 pandemic affected the financial stability of the logistics and transportation sectors (Indah et al 2023). Various studies have examined cargo shipping (Lozinskaia et al 2017), the logistics sector (Brozyna et al 2016;Pisula 2012;Pisula et al 2013), the shipping and logistics industry (Nam and An 2017), the aviation industry (Hu et al 2022;Shi and Li 2024), and transportation companies (Surwanti et al 2022;Salmar 2018;Irawan et al 2021).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

The Economic and Financial Health of Lithuanian Logistics Companies

Bužinskienė,

Gelashvili

2024

Risks

View full text Add to dashboard Cite

In recent decades, the importance of transport and logistics companies has increased considerably, especially for Lithuania, where this sector is on the rise and creating benefits for various users. Therefore, this study aims to analyse the economic–financial situation of transport and logistics companies operating in Lithuania, focusing mainly on their financial risk, probability of bankruptcy, and level of solvency. To achieve these results, 416 companies were analysed based on their data from 2022. The employed methodology included descriptive analysis, quartile ratio analysis, the use of Altman’s Z-score model to predict bankruptcy, and, finally, logistic regression analysis to answer the hypotheses. The results show that the companies analysed in this study were highly profitable, with a high level of solvency and liquidity that did not compromise their continuity in the market. These results were confirmed by the Z-score analysis. In addition, it was observed that the age and size of the companies did not affect their survival on the market. This study presents results that are of great interest for the academic literature, as well as for the management of logistics companies. The originality of the study lies in its relevance and timeliness, presenting robust results for different stakeholders, such as policymakers or new entrepreneurs, among others.

show abstract

Section: Hypothesis Developmentmentioning

confidence: 99%

The Economic and Financial Health of Lithuanian Logistics Companies

Bužinskienė,

Gelashvili

2024

Risks

View full text Add to dashboard Cite

show abstract

Evaluation of the Financial Health of Food Retail Outlets in a Market Environment. A Case Study From the Slovak Republic

Stašová¹

2022

E+M

View full text Add to dashboard Cite

In this paper, food retail stores are evaluated. The aim of the survey is analysis of their financial health using appropriate statistical methods, to analyse the market position of businesses, to identify weaknesses in businesses that may contribute to a poor financial situation, to compare the results obtained and to submit proposals to improve the current financial health of businesses. The analysed sample is made up of a selection of 50 Slovak businesses. The companies operate in the same economic and political system, with similar monetary, customs, tax policy from the government. 4 ratio-based financial analysis indicators were selected as representative (return on assets, return on sales, debt ratio, equity ratio). Multicriterial evaluation methods were used to research the position of businesses on the market (the simple unweighted rank method, the fictional point method, the standardized variable method, the scoring method). We showed the correlations of the methods using Spearman’s rank correlation coefficient. We found the highest correlation in values between the scoring method and the distance from the fictional point method. However, in all cases, by statistical calculation, we found that there is a strong statistically proven relationship between all the methods used. The degree of indebtedness of a business significantly affects its financial health and the structure of the finances. The lowest value for the debt ratio in the monitored sample of businesses is 12.5%. In the group of the worst performing companies, the debt ratio climbed far above the recommended values of 50–70%. The extreme value was a debt ratio as high as 106.3%. We consider the proposals we present to be universal, applicable in other countries in the given sector.

show abstract

Analysis of Financial Distress in Transportation Companies With the Altman Z-Score Approach

Cited by 2 publications

References 5 publications

The Economic and Financial Health of Lithuanian Logistics Companies

The Economic and Financial Health of Lithuanian Logistics Companies

Evaluation of the Financial Health of Food Retail Outlets in a Market Environment. A Case Study From the Slovak Republic

Contact Info

Product

Resources

About