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Journals / Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty / 2026 / Volume: 13 Issue: 2

Altman Z (1968), Springate S, Taffler T and Zmijewski J-Score Models for Predicting the Risk of Financial Failure: An Application to the BIST Textile, Ready-to-Wear and Leather Products Sector

Tuncay Turan Turaboğlu(Mersin üniversitesi)0000-0002-8269-4071
Ayşegül Yılmaz0009-0001-9137-0327
Pages
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Publication Date
2026-06-30
DOI
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AI Summary & Key Takeaways

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⚡ TL;DR(Too Long; Didn't Read)

The findings revealed that the variables most affecting corporate financial failure were: “Earnings Before Interest and Taxes (EBIT)/Total Assets” and “Retained Earnings/Total Assets” in the Altman Z-Score (1968) model, “Earnings Before Interest and Taxes (EBIT)/Total Assets” in the Springate S-Score model, “Profit Before Tax/Average Current Liabilities” and “Current Liabilities/Total Assets” in the Taffler T-Score model, and “Profit Before Tax/Total Assets” in the Zmijewski J-Score model.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:The Textile, Clothing and Leather Products (TWL) sector is of great importance to the Turkish economy, and firms in the sector have faced economic fluctuations and market uncertainties in recent years.
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Key Findings & Data:To this end, data from 22 firms in the BIST XTEKS for the period 2010-2024 were analysed using the Altman Z-Score (1968), Springate S-Score, Taffler T-Score and Zmijewski J-Score models.
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Conclusion & Impact:The findings revealed that the variables most affecting corporate financial failure were: “Earnings Before Interest and Taxes (EBIT)/Total Assets” and “Retained Earnings/Total Assets” in the Altman Z-Score (1968) model, “Earnings Before Interest and Taxes (EBIT)/Total Assets” in the Springate S-Score model, “Profit Before Tax/Average Current Liabilities” and “Current Liabilities/Total Assets” in the Taffler T-Score model, and “Profit Before Tax/Total Assets” in the Zmijewski J-Score model.
🔬Design:Modeling & Simulation
📍Scope:2010-2024 Verileri
⚙️Variables:BIST Textile · Clothing and Leather Sector Index (XTEKS) · Financial Failure

Abstract

The Textile, Clothing and Leather Products (TWL) sector is of great importance to the Turkish economy, and firms in the sector have faced economic fluctuations and market uncertainties in recent years. This study aims to predict the risk of financial failure for firms whose shares are traded on the Borsa Istanbul (BIST) Textile, Clothing and Leather Sector Index (XTEKS). To this end, data from 22 firms in the BIST XTEKS for the period 2010-2024 were analysed using the Altman Z-Score (1968), Springate S-Score, Taffler T-Score and Zmijewski J-Score models. The data used in the study were obtained from the firms' basic financial statements. The findings revealed that the variables most affecting corporate financial failure were: “Earnings Before Interest and Taxes (EBIT)/Total Assets” and “Retained Earnings/Total Assets” in the Altman Z-Score (1968) model, “Earnings Before Interest and Taxes (EBIT)/Total Assets” in the Springate S-Score model, “Profit Before Tax/Average Current Liabilities” and “Current Liabilities/Total Assets” in the Taffler T-Score model, and “Profit Before Tax/Total Assets” in the Zmijewski J-Score model. The results of the out-of-sample tests conducted indicate that these models provide valid forecasts for the Turkish TWL sector.

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Cite This Article

Turaboğlu, T. T., Yılmaz, A. (2026). Altman Z (1968), Springate S, Taffler T and Zmijewski J-Score Models for Predicting the Risk of Financial Failure: An Application to the BIST Textile, Ready-to-Wear and Leather Products Sector. Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty, Volume: 13 Issue: 2. https://ajindex.com/articles/1642012

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