21, July 2025
Financial Distress Analysis of Selected Automobile Companies in India Using Altman Z score Model
Author(s): Shivani Singh
Authors Affiliations:
Research scholar, Faculty of Commerce, Banaras Hindu University, Varanasi, India
DOIs:10.2015/IJIRMF/202507022 | Paper ID: IJIRMF202507022Abstract
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Abstract: The automobile industry plays a pivotal role in India's economic development, making significant contributions to GDP, employment creation, and industrial progress. Due to its capital-intensive nature and sensitivity to market dynamics, assessing the financial condition of automobile firms becomes essential. This research employs the Altman Z-Score model to evaluate the risk of financial distress among five major Indian automobile companies Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Bajaj Auto, and TVS Motor during the period from 2015 to 2024. By examining the Z-Score and its five underlying financial ratios, the study highlights differences in financial stability across these firms. The results indicate that companies such as Bajaj Auto and TVS Motor consistently maintain robust financial positions, whereas Tata Motors exhibits signs of financial strain during certain years. The research demonstrates the practical relevance of the Altman Z-Score as an effective tool for stakeholders in assessing corporate solvency within the evolving landscape of the Indian automobile sector.
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Keywords: Automobile Industries, Financial health, Altman Z score Model, Bankruptcy Prediction, and Financial Distress.
Shivani Singh(2025); Financial Distress Analysis of Selected Automobile Companies in India Using Altman Z score Model, International Journal for Innovative Research in Multidisciplinary Field, ISSN(O): 2455-0620, Vol-11, Issue-7, Pp.146-154.     Available on –  https://www.ijirmf.com/