|Title||A STUDY ON FINANCIAL HEALTH OF TELECOM INDUSTRY IN INDIA USING ALTAMAN Z-SCORE|
Prof. Sonia Gambhir & Prof.Puneet Kumar Garg
Business enterprises work on going concern concept. It is important to predict the financial soundness of a business. That can be done through ratio analysis. Financial ratios are a key pointer of financial reliability of a business. Financial ratios are a tool to determine the operational & financial effectiveness of company. A single ratio cannot effectively assess the overall strength or weakness in a company. Altman developed a z-score model using ratios as its foundation. With the help of the Z- Score model, Altman could predict financial efficiency Bankruptcy up to 2-3 years in advance. The following research paper studies the financial health of telecom industry in India through two major players Bharti airtel and Idea Cellular by using Altaman Z score to predict, analyze, and compare the financial health of the sample companies. The paper finally offers suggestions for improving the solvency position of the companies.