A Comparative Analysis of Financial Performance With Altman Z, Springate S Score and Zmijewski Models: A Research on The Cement Sector in Istanbul Stock Exchange

Abstract

The growth, development, survival, and profitability of companies depend on their ability to compete with rivals in the same sector. To achieve this, companies must utilize their resources effectively and efficiently while avoiding waste. This study estimates the financial risk exposure of cement companies listed on Borsa Istanbul. Using financial data covering 48 periods between 2021 and 2024, the bankruptcy risks of these firms were analyzed using the Altman Z, Springate S, and Zmijewski J-Score models. The results indicate that BSOKE and BTCIM were at risk of bankruptcy across all periods according to the Altman Z and Springate S models, and specifically during 2021-2022 according to the Zmijewski J model. Conversely, NUHCM, OYAKC, and BISCIM were found to be financially sound in all three models. While Altman Z and Springate S yielded highly consistent results, the Zmijewski J-score showed slight variations, primarily due to its lower risk parameters. Overall, the analysis demonstrates that the models used provide largely consistent findings regarding bankruptcy risk.