Financial performance evaluation and bankruptcy Predictability of automotive companies in Pakistan

Abstract

Since the automotive industry is one of the major contributors in the growth of economy, this dissertation examines the performance of automotive industry of Pakistan. It examines the industry’s performance over a period of five years i.e. from 2010 to 2014. For this purpose, I have selected three major and key automotive companies which are as followed: 1. Pak Suzuki Motor Company Limited (PSMC) 2. Indus Motor Company Limited (INDU) 3. Honda Atlas Cars (Pakistan) Limited (HCAR) The principal objective of this thesis is to analyze and interpret the financial health, financial performance and stability of the automotive industry of Pakistan and to assess and evaluate the financial performance of the selected automotive companies. This dissertation also focuses on examining the financial state of affairs of the selected automotive companies and to test their financial strengths and weaknesses. It also identifies and pinpoints the causes of poor financial performance of the industry and selected companies and suggests measures for further improvement. This thesis will try to check whether the Z score has any impact on the stock prices using statistical tools. Overall the dissertation provides a critical insight and review of the automotive industry of Pakistan and its contribution towards the economic growth of the country over the study period determined in our research study.