Financial Performance Measurement of Private Firms from Information, Communication and Transportation Sector of Karachi Stock Exchange and Financial Distress Measurement Using Z-Score Model

Abstract

In this study researcher examined the financial performance of private listed firms on Karachi Stock Exchange (A case of Pakistan Information, Communication and Transport Sector). Data used from 2006-2011 of five firms on the basis of available data of companies for study. Used Liquidity, Working Capital Investment and Solvency tests for financial performance measurement and also used Z-SCORE Model of Altman for measurement of financial distress purpose. Liquidity test provide that position of Netsol Technologies Ltd, Hum Network Ltd and Pakistan Telecommunication Company Ltd, liquidity of Telecard Ltd and World Call Telecom Ltd is not impressive. From Networking Capital Measurement point it is conclude that all firms have sound position. In the last case of Solvency the position of Hum Network Ltd and Netsol Technologies Ltd has very well and that of Telecard Ltd and World Call Telecom Ltd has poor and Pakistan Telecommunication Company Ltd has average results but not so well. From the results of Z SCORE Model it is concluded that the position of all firms are sound except of Telecard Ltd but it also improved in last years of the study.  Netsol Technologies Ltd has financial vary sound of this sample study than followed by Hum Network Ltd. Third good position has by Pakistan Telecommunication Company Ltd then secured position of World Call Telecom Ltd and status of Teleccard is rated last by this study.

Keywords: financial performance measurement, liquidity, Working Capital Investment, Solvency and Financial Distress.