Premium Essay

Assignment on Z Score

In: Business and Management

Submitted By ruamin1991
Words 1118
Pages 5
Index | S/N | Topics | Page No. | 1 | ACKNOWLEDGEMENT | 00 | 2 | Initialization | 01 | 3 | Managerial Decision | 02 | 4 | Z- Score Analyze | 03 | 5 | Z – Score from Financial Statement | 03-09 | 6 | Result Verification | 10 | 7 | Reference | 00 |

Bangladesh Development Bank Limited (BDBL)
Bangladesh Development Bank Limited (BDBL) is fully state owned Commercial Bank of Bangladesh. In addition commercial banking, BDBL provides financial and technical assistance to broaden the private as well as public sector industrial base of the country. It prioritizes, especially, Export Oriented/Export Linkage industrial units, Efficient Import Substitution, Joint Ventures, Commercialization of local technology and promotion of agro-based industry.
Vision, Mission, Values of the Bank:
To emerge as the country’s prime Financial Institution for supporting private sector industrial and other projects of great significance to the country’s economic development. Also be active participant in commercial banking by introducing new lines of product and providing excellent services to the customers.
* To be competitive with other Banks and Financial Institutions in rendering services ; * To contribute to the country’s socio-economic development by identifying new and profitable areas for investment ; * To mobilize deposit for productive investment ; * To expand branch network in commercially and geographically important places ; * To employ quality human resources and enhance their capability through motivation and right –type of training at home and abroad. * To delegate maximum authority ensuring proper accountability ; * To maintain continuous improvement and up-gradation in business policies and procedures ; * To adopt and adapt to new technology ; * To maximize profit by strong, efficient…...

Similar Documents

Premium Essay

Z Score Analysis of Tecumseh

...Z Score Model analysis of Tecumseh Products Company | BY: Shelly Koeck September 24, 2012 Tecumseh Products Company is an industrial goods company that manufactures hermetically-sealed compressors for residential and specialty air conditioning, home refrigerators and freezers, and commercial refrigeration. Tecumseh competes in the same arena as General Electric Company. Tecumseh Products Company employees 6,100 people and are located in Ann Arbor, MI. The company currently has 18.48 M outstanding shares of which 311.16 K shares are at this time shorted by private and institutional investors with about 12.8 days to cover all short positions. Tecumseh has accumulated about 46.2M in cash with 7.8 M of positive cash flow from operations. The Z-Score is a multi-factor model that measures the financial health and economic stability of a company. The score is then used to predict the probability of a firm going into bankruptcy within the next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University. The factors that make up the algorithm are: First Factor: Working Capital / Total Assets = 101.1M/562.5M = .18 Second Factor: Retained Earnings / Total Assets = 317.9M/562.5M= .57 Third Factor: EBITDA / Total Assets= (22.4M)/562.5M= (.04) Fourth Factor: Market Value of......

Words: 602 - Pages: 3

Free Essay

Z Score Analysis

...PREDICTING FINANCIAL DISTRESS OF COMPANIES: REVISITING THE Z-SCORE AND ZETA® MODELS Edward I. Altman* July 2000 *Max L. Heine Professor of Finance, Stern School of Business, New York University. This paper is adapted and updated from E. Altman, “Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy,” Journal of Finance, September 1968; and E. Altman, R. Haldeman and P. Narayanan, “Zeta Analysis: A New Model to Identify Bankruptcy Risk of Corporations,” Journal of Banking & Finance, 1, 1977. Predicting Financial Distress of Companies: Revisiting the Z-Score and ZETA® Models Background This paper discusses two of the venerable models for assessing the distress of industrial corporations. These are the so-called Z-Score model (1968) and ZETA® 1977) credit risk model. Both models are still being used by practitioners throughout the world. The latter is a proprietary model for subscribers to ZETA Services, Inc. (Hoboken, NJ). The purpose of this summary are two-fold. First, those unique characteristics of business failures are examined in order to specify and quantify the variables which are effective indicators and predictors of corporate distress. By doing so, I hope to highlight the analytic as well as the practical value inherent in the use of financial ratios. Specifically, a set of financial and economic ratios will be analyzed in a corporate distress prediction context using a multiple discriminant statistical methodology.......

Words: 8723 - Pages: 35

Premium Essay

Z Score

...Z = 1.2X.sub.1 + 1.4X.sub.2 + 3.3X.sub.3 + 0.6X.sub.4 + 1.0X.sub.5 Where X.sub.1 = Working Capital/Total Assets. This measures liquid assets in relation to the firm's size. Altman, interestingly, mentions that the most widely used current and acid ratios were not as good predictors as this measure. Where X.sub.2 = Retained Earnings/Total Assets. This is a measure of cumulative profitability that reflects the firm's age as well as earning power. Many studies have shown failure rates to be closely related to the age of the business. Where X.sub.3 = Earnings Before Income Taxes/Total Assets. This is a measure of operating efficiency separated from any leverage effects. It recognizes operating earnings as a key to long-run viability. Where X.sub.4 = Market Value of Equity/Book Value of Debt. This ratio adds a market dimension. Academic studies of stock markets suggest that security price changes may foreshadow upcoming problems. Where X.sub.5 = Sales/Total Assets. This is a standard turnover measure. Unfortunately, it varies greatly from one industry to another. We take the data from Yahoo Finance for year ended Dec 31, 2007 Sub 1 = Working Capital/Total Assets Current Assets 60,430 Current Liabilities 70,338 Working Capital (9,908) Total Assets 148,883 Sub 1 -6.65% Sub 2 = Retained earnings/Total Assets Retained earnings (39,392) Sub 2 -26.46% Sub 3 = Earnings Before Income Taxes/Total Assets Earnings......

Words: 348 - Pages: 2

Premium Essay

Z Scores

...Z-Scores A z-score, which is symbolized as z, is the statistic that relates the distance a score is relative to its mean when measured in standard deviation (SD) units (Heiman, 2012). The importance of a z-score is that it enables one to analyze data relative to scores. Z-Scores allow us to determine whether a particular score is equal to the mean, below the mean or above the mean of a bunch of scores, and how far a particular score is away from the mean. Evaluating the scores of Eric’s to determine different z-scores, we use the following computations that he computed where it takes a mean of 17 minutes with a standard deviation of 3 minutes to drive from home, park the car, and walk to his job. , Next we determine the z-score relative to the mean and the SD, to analyze the difference in time to accomplish these steps on different days. One day it took Eric 21 minutes to get to work, and computing the means from the minutes by the SD results in a z of +1.33, which tells you that Eric's time to get to work is 1.33 standard deviations from the mean. The z is positive because it is above the mean, and demonstrates that it took longer for Eric to leave home, park his car and walk to his job when the raw value of time was 21 minutes. On another day in which it took Eric 12 minutes to get to work, the z value resulted -1.66, demonstrating that the time it took Eric to get to work was below the mean, or it took less time. Observing the time in comparison to the mean, it is......

Words: 495 - Pages: 2

Free Essay


...1969), known by his stage name Jay-Z (sometimes stylized as Jay Z or JAY Z),[2][3][4] is an American rapper, record producer, and entrepreneur. He is one of the most financially successful hip-hop artists and entrepreneurs in America. In 2012, Forbes estimated Carter's net worth at nearly $500 million.[1][5] He is one of the world's best-selling artists of all time having sold more than 75 million records, while receiving 17 Grammy Awards for his musical work, and numerous additional nominations.[6][7][8] Consistently ranked as one of the greatest rappers of all time, he was ranked number one by MTV in their list of The Greatest MCs of All-Time in 2006.[9] Three of his albums, Reasonable Doubt (1996), The Blueprint (2001), and The Black Album (2003), are considered landmarks in the genre with all of them featured in Rolling Stone's list of the 500 greatest albums of all time.[10][11][12] As an entrepreneur and investor, Jay-Z co-owns the 40/40 Club, and is the co-creator of the clothing line Rocawear.[13] He is the former president of Def Jam Recordings, co-founder of Roc-A-Fella Records, and the founder of Roc Nation. He also founded the sports agency Roc Nation Sports and is a certified NBA and MLB sports agent.[14] As an artist, he holds the record for most number one albums by a solo artist on the Billboard 200 with 13.[15][16] Jay-Z also has had four number ones on the Billboard Hot 100, one as lead artist. On December 11, 2009, Jay-Z was ranked as the tenth-most......

Words: 352 - Pages: 2

Premium Essay


...Explain when a z-test would be appropriate over a t-test. A Z-test is any statistical test for which the distribution of the test statistic under the null hypothesis can be approximated by a normal distribution. Because of the central limit theorem, many test statistics are approximately normally distributed for large samples. For each significance level, the Z-test has a single critical value (for example, 1.96 for 5% two tailed) which makes it more convenient than the Student's t-test which has separate critical values for each sample size. Therefore, many statistical tests can be conveniently performed as approximate Z-tests if the sample size is large or the population variance known. If the population variance is unknown (and therefore has to be estimated from the sample itself) and the sample size is not large (n < 30), the Student's t-test may be more appropriate. Nuisance parameters should be known, or estimated with high accuracy. Z-tests focus on a single parameter, and treat all other unknown parameters as being fixed at their true values. The test statistic should follow a normal distribution Z-test and T-test are statistical tests used to determine whether two population means are different. Z- test is applied when the variances are known and the sample size is large (n 30), the standard deviation is unknown while z-tests assume that it is known. Z-test has a single critical value which makes it more convenient than the t-test which has separate critical......

Words: 365 - Pages: 2

Free Essay


...Lane Hossum Mr. Latham MUS 005 12 November 2013 Jay-Z Shawn Corey Carter, born December 4, 1969, started his life off as a regular kid, just like every other kid. He was born and raised in a part of New York City known as Marcy, also known as the projects. Shawn was one of four children belonging to Gloria Carter and Adnis Reeves. Early on, his friends game him the nickname of Jay-Z or Jay for short. Who knew he was going to become the man he is today? Jay-Z was a former drug dealer, but is now known for being one of the most successful rappers and entrepreneur alive. According to Saddleback Educational PublishingJay-Z’s net worth is over $450 Million, he has over fourteen Grammy Awards, owns two 40/40 clubs, created his own clothing line [Rocawear], owns Def Jam Recordings, Roc-A Fella Records, and owns a minority share of the Brooklyn Nets. His rap career started early on when he came upon a group circled up, clapping their hands to make a beat, with a kid named slate in the middle of the circle spitting out rhymes. Jay-Z was very intrigued, he had never seen anything like it. Jay remembered, “It was like watching some kind of combat, but he was alone in the center. All he had were his eyes, taking in everything, and the words inside him. I was dazzled.” (Saddleback) Jay-Z started writing down his own rhymes, he wrote at every opportunity, and stated by Saddleback, when he ran out of paper, he would go down to the store and buy a soda just to use the paper bag to......

Words: 1767 - Pages: 8

Premium Essay

Z-Scores Application

...Z-Scores Application 1. The graduate selection committee wants to select the top 10% of applicants. On a standardized test with a mean of 500 and a standard deviation of 100, what would be the cutoff score for selecting the top 10% of applicants, assuming that the standardized test is normally distributed? 2. The average commute time via train from the Chicago O'Hare Airport to downtown is 60 minutes with a standard deviation of 15 minutes. Assume that the commute times are normally distributed. What proportion of commutes would be: a. longer than 80 minutes? b. less than 50 minutes? c. between 45 and 75 minutes? 3. Bob takes an online IQ test and finds that his IQ according to the test is 134. Assuming that the mean IQ is 100, the standard deviation is 15, and the distribution of IQ scores is normal, what proportion of the population would score higher than Bob? Lower than Bob? Z-scores are statistical tools for determining relative performance and comparison across different tests and results (Steinberg, 2011). Z-score helps to re-scale any raw data into standard deviation units. Therefore, different combinations of raw results transform to easy-for-comparison data. 1. Solution: A) Find the z-score, which is separating 10% of the best results. B) Find the value of X Z= (X-Mean)/ 100 Z for 10% or 0.1 from the table Appendix A (Steinberg, 2011) is 1.28 1.28 = (X-500)/100, Therefore X = (1.28 x 100) + 500 = 628 This score (628) separates 10% of the...

Words: 342 - Pages: 2

Free Essay

Z the Man

...Nova Southeastern University Wayne Huizenga Graduate School of Business & Entrepreneurship Assignment for Course: MGT 5020 Managerial Organizational Behavior Submitted to: Baiyun Gong Submitted by: Zubaer Rafique N01533706 218 Charter Way, West Palm Beach, FL 33407 561-713-8333 Date of Submission: 2/23/2014 Title of Assignment: Current Event- Craig Thompson faces 5 years jail after guilty finding on fraud, theft charges CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I used data, ideas of words, whether quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student Signature: ZUBAER RAFIQUE ******************************************* Instructor’s Grade on Assignment: Instructor’s Comments: Former Australian MP “Craig Thompson faces 5 years jail after guilty finding on fraud and theft charges” on 18th February 2014 the age reporter Adam Cooper wrote about this on “The Sydney Morning Herald” federal politics section. Craig Thompson was union’s national secretary from 2002 till 2007. For the past few years this former MP was charged with more than 140 offences, including theft, obtaining property by deception and also obtaining financial advantage by deception...

Words: 522 - Pages: 3

Premium Essay


...Summary Z-Wing is a military and a commercial aircraft manufactured one of the larges in the world. At this moment Z-Wing is the leader of the market. Janssen is the biggest competitor of Z-Wing. Z-Wig needs to keep its position on the market and not o lose more percent on the aircraft market. This analysis will show a description of the product and service of what Z-Wing need to work to stay as market leader. The company will focus on the marketing of new planes and services to the airlines. What is the target customer and what opportunity on new areas that Z-Wing can expand. Will show how or competition is doing in the market, what products and service is offering. Is truly important is that is going to give us a view on how the market is doing in areas like demographics, market size, statistical income and how is growing, this information will help Z-Wing to see what threats and opportunities can confront. Its will evaluate the financial status and forecast the sales and expenses that Z-Wing expects with this new products and services. This will describe how Z-Wing expects to distribute, promote, pricing the products and service. Additional to this Z-Wing is going to implement a CRM (Customer Relationship Management) system that ill help improve customer service and will provide data information to help move forward with the market strategies. This will be help on the customer needs, customer support system and marketing efforts. Situation Analysis Z-Wing......

Words: 3167 - Pages: 13

Premium Essay

Gs2745 Unit 7 Assignment 1: Calculating Credit Scores

...Unit 7 Assignment 1: Calculating Credit Scores Course Objectives and Learning Outcomes Identify the factors that determine someone’s credit rating. Calculate the cost of a loan given various ratings of the borrower. Analyze various personal finance scenarios dealing with student loans, personal consumer loans, mortgages, the true cost of bad credit, compound interest, savings, investing in assets, budgeting, and using self-control when spending. Assignment Requirements A credit score needs to be protected and improved. You need to understand the true value of a credit score by researching the causes of bad credit scores and how to improve them. Using the Internet and ITT Tech Virtual Library, you will research how the credit score is calculated and what influences the credit score. Answer the following questions in detail. How is your credit score (FICO) created? Who reports your FICO score? What are the factors in determining the FICO score? What steps could you take to improve your FICO score? Required Resources Skills for Living a Rich Life, Chapter 12 Computer with MS Word and Internet access ITT Tech Virtual Library Printer Submission Requirements Prepare a two- to three-page typed paper, double-spaced, using 12-point Times New Roman font. Please include appropriate references in APA format. This assignment is due at the beginning of Unit 8. GS2745 UNIT 7 ASSIGNMENT 1 How is your credit score (FICO) created? FICO Scores are......

Words: 872 - Pages: 4

Free Essay


...Clinical research The SYNTAX Score: an angiographic tool grading the complexity of coronary artery disease Georgios Sianos1, MD, PhD; Marie-Angèle Morel2, BSc; Arie Pieter Kappetein3, MD, PhD; Marie-Claude Morice4, MD; Antonio Colombo5, MD; Keith Dawkins6, MD; Marcel van den Brand7, MD, PhD; Nic Van Dyck8, RN; Mary E Russell9, MD; Friedrich W. Mohr10, MD; Patrick W Serruys1* MD, PhD 1. Department of Interventional Cardiology, Erasmus Medical Center, Thoraxcenter Rotterdam, The Netherlands 2. Cardialysis BV, Rotterdam, The Netherlands 3. Department of Cardiothoracic Surgery, Erasmus Medical Center, Thoraxcenter, Rotterdam, The Netherlands 4. Institut Cardiovasculaire Paris Sud, Massy, France 5. San Raffaele Hospital, Milano, Italy 6. Southampton General Hospital, Southampton, UK 7. Ouderkerk aan den ijssel, The Netherlands 8. Boston Scientific Corporation, Maastricht, The Netherlands 9. Boston Scientific Corporation, Natick Massachusetts, USA 10. Herzzentrum, Leipzig, Germany Introduction Optimal revascularization strategy in patients with coronary artery disease remains a subject of debate between interventional cardiologists and surgeons. Numerous large scale randomized trials addressed this issue comparing coronary artery bypass grafting (CABG) with percutaneous coronary intervention (PCI) in patients with multivessel disease (MVD). Initially these trials compared multivessel balloon angioplasty with CABG1-6 and in a later period multivessel......

Words: 2049 - Pages: 9

Premium Essay


... Investment Valuation Assignment On Altman’s Z-Score Submitted By: A Sreekanth Vidyasagar Garvit Sharma A Dixit Altman Z-score The Z-score formula for predicting bankruptcy was published in 1968 by Edward I. Altman, who was, at the time, an Assistant Professor of Finance at New York University. The formula may be used to predict the probability that a firm will go into bankruptcy within two years. Z-scores are used to predict corporate defaults and an easy-to-calculate control measure for the financial distress status of companies in academic studies. The Z-score uses multiple corporate income and balance sheet values to measure the financial health of a company. Z score bankruptcy model: Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + .999X5 Explanation X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors...

Words: 2038 - Pages: 9

Premium Essay


...THE A-TO-Z OFFICE SUPPLY COMPANY INTORDUCTION Christine Yamaguchi, the manager of the A-to-Z Office Supply Company, attempts to gain an advantage over its competitors by providing quality customer service, which includes to meet the customers need and to provide the prompt delivery. The company has to maintain a large volume stock at their central warehouse and at the three retail stores. In order to maintain the stock, Christine borrows cash on a daily basis from the First Piedmont Bank. The data provided by Christine is that the company’s demand for cash to pay for inventory will be $17,000 per day for 305 working days for the coming fiscal year. The money she borrows during the year must be repaid with 9% interest rate by the end of the year. The bank also charges the company a loan origination fee of $1,200 plus 2.25% ………. Christine wants to determine an optimal borrowing policy with the use of the EOQ analysis method. She also wants to determine the amount of the loan she should secure from the bank, the total annual cost of the company’s borrowing policy, and the number of loans the company should obtain during the year. She also wants to know the level of the cash on hand at which the company should apply for a new loan when it takes 15 days for the process. In addition, she wants to know the company’s optimal loan amount in case the bank offers a discount of 0.25% by lowering down the points charged from 2.25% to 2.00% if any loan amount exceeds......

Words: 815 - Pages: 4

Premium Essay

Mergers a to Z

... More Praise for the Second Edition of Mergers & Acquisitions from A to Z ‘‘Sherman and Hart have done a terrific job assembling and synthesizing the basic, yet critical, issues to be aware of before/during/ after the deal. A well-rounded, up-to-date primer filled with pragmatic information that will serve as an excellent reference regardless of the reader’s M&A experience.’’ —Edward J. Hayes, Jr. Executive Vice President and Chief Financial Officer Quantum Corporation ‘‘After reading Andrew’s book, it became clear that his insight and processes assist entrepreneurs looking to expand their businesses. Andrew’s book offers guidance for non–U.S.-based businesses considering mergers and acquisitions in the United States.’’ —Nancye Miller, CEO, EO The Entrepreneurs’ Organization ................. 11539$ $$FM 10-19-05 09:48:09 PS PAGE i This page intentionally left blank PAGE ii MERGERS & ACQUISITIONS F ROM A SECOND TO Z EDITION Andrew J. Sherman and Milledge A. Hart American Management Association New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco Shanghai • Tokyo • Toronto • Washington, D.C. ................. 11539$ $$FM 10-19-05 09:48:11 PS PAGE iii Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, ...

Words: 103115 - Pages: 413