A note on the financial condition of defense contractors |
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| Authors: | William F Bowlin |
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| Institution: | Department of Accounting , University of Northern Iowa , Cedar Falls, IA, 50614–0127 |
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| Abstract: | In recent years, there have been several changes in the weapon‐system acquisition market which have the potential to negatively impact the financial condition of defense contractors. This study evaluates the financial health of defense firms vis‐a‐vis nondefense firms using a fiscal distress identification model developed by E.I. Altman. We conclude that the financial condition of defense firms has deteriorated but the deterioration is the same as experienced by nondefense firms. |
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| Keywords: | Defense industry financial analysis Altman's Z score |
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