Authors:

Charmy Gandhi

Abstract:

A financially sound firm is capable of paying its obligations in a timely manner; yet, owing to internal and external conditions, the company may experience losses and be unable to pay its debt. As a result, the corporation became financially distressed, insolvent, or bankrupt. In order to take appropriate actions, it is essential to forecast financial difficulties. In this study, the researcher uses the Springate S Score to study financial distress of chosen steel companies operating in India. Secondary data from five of the worst-performing manufacturing steel companies was collected over a five-year period, commencing in 2016-17 and ending in 2020-21. Using Microsoft Excel software, the acquired data was evaluated. According to the Springate Score Model, two firms are financially distressed and three companies are solvent out of five.

Keywords:

Springate Score, Financial distressed, solvent, steel companies

Vol & Issue:

VOL.13, ISSUE No.4, December 2021