Assessing Financial Soundness of Tannery Industry in Bangladesh: An Empirical Investigation Using Z-Score
Abstract
There are lots of techniques available for measuring the financial health of a business firm. But the Altman’s Z-score has been proven to be a reliable tool across contexts. Bangladesh tannery industry is a unique one because the industry earns $1 billion-a-year by exporting leather. The main objective of the study is to assess the fundamental financial health of this industry using Z-score model. All listed tannery firms are considered in this study and the observed period is from 2010 to 2014. The required information has been collected from the annual reports of the selected companies and from other sources. The study revealed that two firms, Apex tannery and Bata Shoe, are financially sound whereas other three are not in a good position. The findings of the study can be useful for the managers to take financial decision, the stockholders to choose investment options and others to look after their interest in the leather manufacturers of the country.
Keywords: Tannery industry, Financial soundness, Prediction, Z-score
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