Financial failure prediction with Altman Z score and impact of COVID 19 pandemic on financial failure: An implementation BIST 100 production sector

In this dissertation, the financial failure concept is analyzed in detail and the reasons, cost and prediction methods are discussed. Financial failure prediction methods are approached with univariate and multivariate analysis comparatively. The focus of this study is the Altman Z score model which is one of the financial failure prediction models. Mechanism, parameters and coefficients of the model are explained in depth. In the implementation chapter of the dissertation, Altman Z scores of production businesses which are located in the BIST 100 index are calculated using balance sheet and profit & loss table data for years 2019, 2020 and 2021. The results of the calculations are listed by sub-sector and business in the dissertation. The other focus of the study is to measure the financial failure impact of the COVID 19 pandemic on the businesses. According to results obtained from the sample, there is a perceptible impact on stone and soil based industry, textile-skin, metalware-transport industry whereas the food-drink-tobacco industry and chemistry-medicament-oil industry are not affected substantially.