EVALUATION OF FINANCIAL PERFORMANCE USING ALTMA Z-SCORE INDEX: EVIDENCE FROM SENIOR STAFF MULTIPURPOSE CO-OPERATIVE SOCIETY, FEDERAL POLYTECHNIC, BIDA FROM 2013-2019
Ibrahim AbubakarMikugi&HauwaDaniyan- Bagudu
Department of Business Administration and Management, Federal Polytechnic, Bida,
Department of Banking and Finance, Federal Polytechnic, P.M.B. 55 Bida, Niger State
Email:tatafoundation@hotmail.com&hauwadaniyan77@gmail.com
ABSTRACT
Most investors, stakeholders, customers and financial institutions develop perception about a firm’s financial performance due to the insufficient analysis of the firm in terms of financial performance. Focusing on only one indicators of financial performance and ignoring others may lead information users to wrong financial decisions, whileanalysing financial performance of companies based on only asset criteria size may be misleading. The objective of this paper was to evaluate the financial performance of Senior Staff Multipurpose Society, Federal Polytechnic Bida. The methodology used was through secondary data collection. Through this method the researchers made use of the annual financial statement of Senior Staff Multipurpose Co-operative Society, Federal Polytechnic Bida from 2013-2019. Analysis was done using Altman Z-Score index which predicts corporate financial performance, bankruptcy and distress. Findings revealed that Senior Staff Multipurpose Co-operative Society financial performance using Z-Score Index stood at 2.37, 2.19, 2.14, 2.36, 2.33, 2.34 and 2.24 for 2013, 2014, 2015, 2016, 2017, 2018 and 2019 respectively. It can be concluded based on the study that Senstaf Co-operative Society financial evaluation result compared to Z-score decision criteria is in grey zone but needs to do more by our evaluation. The Altman index decision criteria is given as Z-Score higher than 2.99 means good performance, Z-Score between 1.89-2.99 as in good condition but needs to do more & Z-Score less than 1.89 as the firm financial performance is poor. We therefore recommended that Senstaf Co-operative Society should put more effort to improve in its Sales to Total Asset Value, this would help drive more investment.
Keyword:Financial Performance, Bankruptcy, Financial Distress Co-operative Society, Altman Z-Score.