Financial Analysis and Implication on Sugar Sector of Pakistan using Altman’s Z-score

Abstract

Best economy of the country is the best source for the growth of industry, for the best economy there is the important role of industry, same sugar industry has its greater role. The objective of this research are to judge the power of financial ratios for evaluating sugar Z values and to look at the financial strength of the Pakistan sugar sector, the secondary data from 2011 to 2015 of 32 listed sugar firms has been taken to find out financial distress. The data withdraw added working capital, total assets, retained earnings, total liabilities and sales. The study recognized that the Altman’s Z-score model was suitable for finding financial distress of the sugar industry. The study recommends the acceptance of Altman’s  model in predicting financial distress of the sugar industry.

Keywords: Sugar manufacturing, Financial distress, Altman Z-score.