Evaluating the Financial Health of Jordan International Investment Company Limited Using Altman’s ‘Z’ Score Model
Dr. Basman Omar Al-Dalayeen

Abstract
Various tools are used for assessing the financial health of the companies by shareholders, government, bankers, creditors, financial institutions etc. They focus on the profitability and solvency position of the company. However, the absolute figures in the financial statements do not serve this object. There are many accounting tools like ratio analysis, decision theory etc. used for analysis but again they shows absolute result through which the present position can be judged not the future. Edward I Altman, Professor of Finance at New York University was the first person who developed a new model popularly known as "Z-score Model" to predict the financial health of the business concerns. He considered five ratios and assigned a weight for each ratio and produced a single number which indicates the financial health of the business concerns. In the current paper, an attempt has been made to predict the financial health of Jordan International Investment Company Limited (JIICL) for ten years since 2004-2005 to 2013-2014 with the application of Altman's Z-Score model. It has been revealed that JIICL is in too healthy Zone where it is successful in its financial performance and not to fall bankrupt.

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