Analysis of Financial Distress In Banking Sector By Using Altman Z-Score and Zmijewski Models

Abstract

The ALTMAN Z-score and ZMIJEWSKI models, two well-known models, as analytical tools. These models, which were created by Edward I. Zmijewski and Edward I. Altman, respectively, have shown to be useful in assessing the state of an industry's finances and forecasting the probability of bankruptcy. Through the application of these models to the particular context of the banking industry, this study seeks to offer important insights into the causes of financial hardship and the predictive power of these models.