I-Hui's Blog

Business Strategic Research

April 3rd, 2012

HHI Analysis – an Indicator of Monopoly or Fragmented Industry

The Herfindahl index (also known as Herfindahl–Hirschman Index, or HHI) is a measure of the size of firms in relation to the industry and an indicator of the amount of competition among them. It is an economic concept widely applied in competition law, antitrust and also technology management. It is defined as the sum of […]

Altman Z-Score Analysis – Are they going to bankrupt?

Altman Z-Score is a predictive model created by Edward Altman in the 1960s. This model combines five different financial ratios, each assigned a different weight, to determine the likelihood of bankruptcy amongst companies.  The Z-score formula has three different weighted value type below: 1) Publicly Held Firm Financial Ratios T1 = Working Capital / Total Assets […]