The Evaluation of Financial Stability of Czech Companies through the Z-Score and the IN05 Index and their Comparison

摘要

The last global crisis damaged financial stability of almost all companies in the world. This article is focused on the evaluation of the financial health of 50 large Czech companies by 2 bankruptcy models - well-known and generally used the Z-Score and the index IN05, which was created especially for Czech environment. Although both models are similar, they provide different informations in many cases. The results of these models show, that in the years 2008 and 2009 come to pass to the general deterioration in the financial health of the monitored companies. In 2010 there was a slight improvement thanks to corporate management response to a new situation. Nevertheless, we can say that the companies reached a stable level of financial health during the time period of 2006-2010.