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Business, Accounting & FinanceIntermediate

Financial ratio analysis to predict distress in listed Pakistani companies

Use five to ten years of published accounts to test whether models such as the Altman Z-score predict financial distress for PSX-listed firms.

Scope

  • Collect ratios from annual reports for a sample of listed companies.
  • Compute Z-scores and fit a logistic model on later distress events.
  • Compare accuracy and discuss what local investors should watch.