Thomas Cook(ed): using Altman's z-score analysis to examine predictors of financial bankruptcy in tourism and hospitality businesses

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edmund Goh ◽  
Saiyidi Mat Roni ◽  
Deepa Bannigidadmath
Keyword(s):  
Bankruptcy Prediction ◽  
Warning Signs ◽  
Financial Ratios ◽  
Financial History ◽  
Content Type ◽  
Financial Ratio ◽  
Academic Paper ◽  
Score Analysis ◽  
Hospitality Firms ◽  
Tourism And Hospitality

PurposeFinancial bankruptcy is inevitable in the tourism and hospitality ecosystem. Despite the pertinence of tourism and hospitality businesses going into bankruptcy, limited studies have investigated the early warning signs and likelihood of a financial bankruptcy occurring in tourism and hospitality firms. This study examined the predictive value of financial ratios as potential indicators in predicting bankruptcy among tourism and hospitality firms.Design/methodology/approachAltman's z-score bankruptcy prediction model was applied through five key financial ratios to predict bankruptcy of the Thomas Cook Travel Group over a ten year period (2008–2018).FindingsThe key findings of this study strongly suggest that besides the size and location of the firm, financial ratios are reliable predictors and play a pivotal role in predicting the bankruptcy of a tourism and hospitality business.Practical implicationsThe paper provides key stakeholders to adopt checks and balances to identify financial distressed tourism firms through financial ratios.Originality/valueThis is the first academic paper to inspect the financial history of Thomas Cook Travel Group in a financial ratio context, particularly following the bankruptcy of the firm in 2019.

Can you balance the gaps? Ambidexterity in service firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christina Öberg ◽  
Beata Kollberg
Keyword(s):  
Market Development ◽  
Service Firms ◽  
Technological Advancement ◽  
Time Schedule ◽  
Content Type ◽  
Customer Involvement ◽  
Hospitality Firms ◽  
Collaborative Interaction ◽  
Tourism And Hospitality

PurposeAmbidexterity refers to the ability to balance contradictory items and has been extensively described in relation to technological advancement in large-sized manufacturing firms. Few studies on hospitality and tourism firms have described the balancing of innovative developments, often focusing on the operational level of firms. Ambidexterity could though be understood also in dimensions of customer/market development and collaborative interaction. This paper describes and discusses ambidexterity in the dimensions of technological advancement, customer/market development and collaborative interaction in service firms to inspire this debate and bridge the gap between strategy and the service field.Design/methodology/approachA case study describing a service firm's 25-year development functions as the empirical source of inspiration to understand how service firms also in tourism and hospitality sectors would work with strategies and their developments related to technology, customers and collaboration. The case study is analysed using an activity-based time schedule to capture dimensions of ambidexterity and how they are linked to one another.FindingsThe findings indicate how the service firm balanced exploitation and exploration over time, rather than allowing such activities to occur simultaneously and in parallel. Generally, the firm only managed to explore in one dimension at the time.Originality/valueThe paper broadens the lens on ambidexterity to include collaboration and customer involvement and the link among the various dimensions of ambidexterity. It also discusses how ambidexterity in these dimensions may be handled by service firms so as to inspire strategic developments among tourism and hospitality firms.

scholarly journals Analisis Kinerja Keuangan Perusahaan pada PT. Japfa Comfeed Indonesia Tbk

2020 ◽  
Vol 5 (2) ◽  
pp. 203
Author(s):  
Jezzyca Ria Paramita ◽  
Iwan Eka Putra ◽  
Abd Halim ◽  
Ermaini Ermaini
Keyword(s):  
Financial Performance ◽  
Secondary Data ◽  
Financial Statements ◽  
Bankruptcy Prediction ◽  
Financial Ratios ◽  
Z Score ◽  
Financial Ratio ◽  
Financial Condition ◽  
Score Method ◽  
Solvency Ratio

Financial performance is an overview of how a company's financial condition is. To assess financial performance is used with a benchmark commonly called financial ratios. Financial ratios used are usually such as profitability ratio, liquidity ratio and solvency ratio. in addition to using financial ratios, the company can also use the Altman Z-Score method to assess the level of the company's bankruptcy prediction. This research aims to find out the financial performance of PT Japfa Comfeed Indonesia Tbk as well as the company's future bankruptcy predictions. the research method used is quantitative analysis based on secondary data taken from the Financial Statements of PT Japfa Comfeed Indonesia Tbk for the period 2014 to 2019. The results of the study are measurements of the company's financial ratio showing sufficient value while measurements using the company's Altman Z-Score method show healthy value which means it does not go into bankruptcy.

scholarly journals Have changes in business practices and reporting standards changed the taxonomy of financial ratios?

2016 ◽  
Vol 31 (2) ◽  
pp. 85-97 ◽  
Author(s):  
Thomas L. Zeller ◽  
John Kostolansky ◽  
Michail Bozoudis
Keyword(s):  
Manufacturing Industry ◽  
Financial Analysis ◽  
Financial Ratios ◽  
Future Research ◽  
Business Practices ◽  
Current Position ◽  
Content Type ◽  
Financial Ratio ◽  
Bartlett’S Test ◽  
Practical Implications

Purpose – Prior research established a seven dimensional taxonomy of financial ratios. The purpose of this paper is to identify the extent to which the previously identified relationships have changed, and if appropriate, to establish an entirely new taxonomy of manufacturing industry financial ratios. Design/methodology/approach – The authors used principle component analysis (PCA) to identify factor patterns for 58 financial ratios over the ten-year period 2004-2013. The validity of employing PCA was confirmed using the Kaiser-Meyer-Olkin measure of sampling adequacy and Bartlett’s test of sphericity. Findings – This study identified four additional financial analysis factors beyond the seven established by prior research. Notably, a separate cash flow factor did not surface as was the case in earlier work but an entirely new factor (current position) was identified. Research limitations/implications – This paper leaves to future research to establish the precise causes for the changes to the taxonomy of financial ratios and how to best utilize the new set of factors for financial analysis research. Practical implications – This paper identifies changes in financial ratio relationships to guide future researchers in selecting appropriate ratios for their studies. Originality/value – This study substantially improves and extends prior work in two areas. First, it utilizes advanced statistical methodologies and computing technologies that were unavailable to previous researchers. Second, it investigates not only the current taxonomy of manufacturing industry financial ratios, but also its stability over a recent ten-year period.

scholarly journals ANALISIS PERBANDINGAN KINERJA KEUANGAN DAN HUBUNGANNYA DENGAN HARGA PASAR SAHAM PADA PT. CIPUTRA DEVELOMPENT Tbk. DAN PT LIPPO KARAWACI Tbk. PERIODE 2001-2005

2017 ◽  
Vol 4 (1) ◽  
Author(s):  
Edward Edward
Keyword(s):  
Activity Ratio ◽  
Financial Ratios ◽  
Company Performance ◽  
Z Score ◽  
Financial Ratio ◽  
Leverage Ratio ◽  
Financial Report ◽  
Score Analysis ◽  
Z Scores ◽  
Important Input

<p class="Pendahuluan">Financial report is an important tool for the user to appraise company performance. In company’s financial report we usually use some ratios; those ratios are liquidity ratio, leverage ratio, activity ratio, and profitability ratio. Beside those financial ratios, in this research the journalist added Z-score analysis to find out bankruptcy possibility. Higher Z-Scores has shown us the lower bankruptcy possibilty.</p><p class="Pendahuluan">The writers choose PT Ciputra Development Tbk. and PT Lippo Karawaci Tbk. to observe because both companies have a lot of experience in property industry. From the research, we found out that PT Lippo Karawaci has a better financial ratio and Z-Scores than PT. Ciputra Development Tbk. and for the company, the result of the research could be important input to company’s strategic planning.</p><p class="Pendahuluan"> </p><p class="Pendahuluan">Keyword : Financial Report, financial ratios, Z-Scores</p>

Dynamization of bankruptcy models via indicator variables

2019 ◽  
Vol 26 (1) ◽  
pp. 317-332 ◽  
Author(s):  
Tamás Nyitrai
Keyword(s):  
Financial Performance ◽  
Predictive Power ◽  
Prediction Models ◽  
Credit Scoring ◽  
Predictive Performance ◽  
Bankruptcy Prediction ◽  
Financial Ratios ◽  
Indicator Variable ◽  
Content Type ◽  
Indicator Variables

Purpose The purpose of this paper is to enhance the predictive power of bankruptcy prediction models by taking the past values of firms’ financial ratios as benchmark. For this purpose, the paper proposes an indicator variable expressing the time trends of financial ratios. Design/methodology/approach The proposed measure uses the minimum and the maximum of financial ratios from the previous period as benchmarks in order to give a more complete picture about the present financial performance of firms. The most popular classification methods of bankruptcy prediction were employed: discriminant analysis, logistic regression, decision trees. Sample specific results and conclusions were avoided by applying tenfold stratified cross-validation. Findings The empirical results suggest that the proposed measure can increase the predictive performance of bankruptcy prediction models compared to models based solely on static financial ratios. The results gave evidence for the fact that the firms’ past financial performance is a useful benchmark for evaluating the risk of future insolvency. Originality/value The proposed concept is completely new to the literature and practice of bankruptcy prediction. Similar concept has not been published to date. The suggested dynamization approach has three important advantages. It is easy to compute from time series of financial ratios. It is applicable within any classifier irrespective of its mathematical background. The performance of models can be enhanced without the necessity of giving up the interpretability of bankruptcy models, so the proposed measure may play very important role in the practice of credit scoring modeling as well.

Marketing strategies to boost service industry firms: Tourism and hospitality in Thailand

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Service Industry ◽  
Marketing Strategies ◽  
Positive Outcomes ◽  
Improve Performance ◽  
Content Type ◽  
Pertinent Information ◽  
Key Variables ◽  
Hospitality Firms ◽  
Tourism And Hospitality ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Tourism and hospitality firms in less conventional tourist areas can improve performance by utilizing relevant service marketing strategies. Focusing on components of the 7 P marketing mix along with key variables enables positive outcomes in view of revenue, cost and profit. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Analisis Prediksi Kebangkrutan dan Rasio Keuangan Bank Umum Syariah dengan Metode Altman Z-Score pada Tahun 2011-2015

2018 ◽  
Vol 1 (1) ◽  
pp. 51
Author(s):  
Rais Sani Muharrami ◽  
Sinta Sinta
Keyword(s):  
Comparative Analysis ◽  
Sampling Methods ◽  
Time Series Data ◽  
Bankruptcy Prediction ◽  
Financial Ratios ◽  
Series Data ◽  
Financial Ratio ◽  
Significant Difference ◽  
The Difference ◽  
Altman Model

The purpose of this research is to perform a comparative analysis of bankruptcy prediction and financial ratio related to Bank Umum Syariah Devisa and Bank Umum Syariah non Devisa. This research applied Altman model on Bank Umum Syariah Devisa and Bank Umum Syariah non Devisa to explain its bankruptcy prediction., while Mann Withney test is used to show a comparative analysis on its financial ratio related to bankruptcy.  Data was use in this research is time series data, the data from 2011 up to 2015. The data is obtained from publication in Otoritas Jasa Keuangan (OJK) and publication in each bank’s website. The sampling techniques using purposive sampling methods. This research can be concluding that there is no difference between Bank Umum Syariah Devisa and Bank Umum Syariah non Devisa on Bankruptcy prediction with Altman model. In financial ratios related to bankrupty exposure such as liquidity, Profitability, and Productivity has not significant difference to. While insolvency ratio at Bank Umum Syariah Devisa and Bank Umum Syariah non Devisa foundto have differences. For bankruptcy prediction at Bank Umum Syariah Devisa and Bank Umum Syariah non Devisa is found not difference. So, we can conclude that the difference in bankruptcy perdiction on Bank Umum Syariah Devisa and Bank Umum Syariah non Devisa caused by the absence of dirrerences in the financial ratios with regard to bankruptcy unless insolvency.

Distressed Chinese firm prediction with discretized data

2017 ◽  
Vol 55 (5) ◽  
pp. 786-807 ◽  
Author(s):  
Jun Huang ◽  
Haibo Wang ◽  
Gary Kochenberger
Keyword(s):  
Bankruptcy Prediction ◽  
Prediction Performance ◽  
Financial Ratios ◽  
Learning Approaches ◽  
Continuous Variables ◽  
Classification Problems ◽  
Content Type ◽  
Chinese Firm ◽  
Chinese Companies ◽  
The Impact

Purpose The authors develop a framework to build an early warning mechanism in detecting financial deterioration of Chinese companies. Many studies in the financial distress and bankruptcy prediction literature rarely do they examine the impact of pre-processing financial indicators on the prediction performance. The purpose of this paper is to address this shortcoming. Design/methodology/approach The proposed framework is evaluated by using both original and discretized data, and a least absolute shrinkage and selection operator (LASSO) selection technique for choosing an appropriate subset of financial ratios for improved predictive performance. The financial ratios are then analyzed by five different data mining techniques. Managerial insights, using data from Chinese companies, are revealed by the methodology employed. Findings The prediction accuracy increases after we discretized the continuous variables of financial ratios. A better prediction performance can be achieved by including fewer, but relatively more significant variables. Random forest has the highest overall performance following closely by SVM and neural network. Originality/value The contribution of this study is fourfold. First, the authors add to the literature on defaults by showing variable discretization to be an essential pre-processing step to improve the prediction performance for classification problems. Second, the authors demonstrate that machine learning approaches can achieve better performance than traditional statistical methods in classification tasks. Third, the authors provide the evidence for the adoption of C5.0 over other methods because rules generated with C5.0 provide managerial insights for managers. Finally, the authors demonstrate the effectiveness of the LASSO technique for identifying the most important financial ratios from each category, enabling one to build better predictive models.

Journey towards best practices in acting on early warning signs in complex projects within a Russian context

2015 ◽  
Vol 8 (4) ◽  
pp. 828-843 ◽  
Author(s):  
Gulnara Sharaborova ◽  
Derek H.T. Walker ◽  
Guinevere Gilbert
Keyword(s):  
Early Warning ◽  
Point Of View ◽  
Warning Signs ◽  
Theory And Practice ◽  
Doctoral Study ◽  
Content Type ◽  
Early Warning Signs ◽  
Complex Projects ◽  
Research Findings ◽  
Phd Thesis

Purpose – The purpose of this paper is to provide a summary report and reflect on a recently passed PhD thesis (Sharaborova, 2014b) related to project management topics. Design/methodology/approach – This paper focussed on narrative reflection upon the completed doctoral journey. Findings – This paper presents the thesis findings, the research models, the guide in dealing with the early warning signs that developed as a result of this research and the contribution made to theory and practice. Research limitations/implications – Limitations of the research and the perspectives of the further diffusion of the research findings are considered. Originality/value – This TRN is a PhD candidate’s point of view as well as the opinions of the scientific research supervisors about the doctoral study and its outcome. The paper could be useful for novice researchers who wish to conduct their research and did not yet make a decision.

Risks of financial abuse of older people with dementia: findings from a survey of UK voluntary sector dementia community services staff

2014 ◽  
Vol 16 (3) ◽  
pp. 180-192 ◽  
Author(s):  
Kritika Samsi ◽  
Jill Manthorpe ◽  
Karishma Chandaria
Keyword(s):  
Online Survey ◽  
Local Community ◽  
Community Support ◽  
Voluntary Sector ◽  
Community Services ◽  
Warning Signs ◽  
Money Management ◽  
Content Type ◽  
Financial Abuse ◽  
People With Dementia

Purpose – Financial abuse of people with dementia is of rising concern to family carers, the voluntary sector and professionals. Little is known about preventative and early response practice among community services staff. The purpose of this paper is to investigate voluntary sector staff's views of the risks of managing money when a person has a dementia and explore ways that individuals may be protected from the risks of financial abuse. Design/methodology/approach – An online survey of staff of local Alzheimer's Society groups across England was conducted in 2011 and was completed by 86 respondents. Open-ended responses supplemented survey questions. Statistical analysis and content analysis identified emergent findings. Findings – Most respondents said their people with dementia experienced problems with money management, with almost half the respondents reporting encountering cases of financial abuse over the past year. Most were alert to warning signs and vulnerabilities and offered suggestions relevant to practice and policy about prevention and risk minimization. Research limitations/implications – Adult safeguarding practitioners are likely to encounter money management uncertainties and concerns about exploitation of people with dementia. They may be contacted by community-based support staff from the voluntary sector about individual queries but could ensure that such practitioners are engaged in local training and networking activities to promote their skills and confidence. Practical implications – As with other forms of elder abuse, professionals need to be aware of risks of financial abuse and be able to suggest effective yet acceptable preventive measures and ways to reduce risks of harm and loss. Further publicity about adult safeguarding services may be needed among local community support services. Originality/value – There have been few studies investigating the views of people working with people with dementia in the community about adult safeguarding.

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