Small and Medium Size Companies Financial Durability Altman Model Aplication

Chávez Milka Elena Escalera and Hernández Cristóbal
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Chávez Milka Elena Escalera: Universidad Autónoma de San Luis Potosí, México
Hernández Cristóbal: PhD student UCC Business School, Universidad Cristóbal Colón, Veracruz, México

Mediterranean Journal of Social Sciences, 2018, vol. 9, issue 2, 9-15

Abstract: In order to achieve good operation and avoid failure, a prediction analysis of the financial status can help business to plan its commercial activities. The objective of this research is to determine if medium and small companies from Tuxtepec, Oaxaca in Mexico are financially durable. The Altman Z-Score was applied. The sample has 32 Medium and small companies from Tuxtepec, Oaxaca. The results show that 3.1% of the companies are bankrupt, a 25% of them are in a gray zone and a 75% are on a safe zone. The results show that the medium and small companies from Tuxtepec, Oaxaca are financially durable.

Keywords: Durability; Failure; Small and medium companies; Altman Z-Score (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:mjsosc:v:9:y:2018:i:2:p:9-15:n:1

DOI: 10.2478/mjss-2018-0021

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