Abstract:
This research has been conducted to gain a better understanding of the Modaraba industry and to apply the Altman Multivariate model to some selected Modarabas (Al-Tijarah, Trust Modaraba, First UDL Modaraba, First Imrooz Modaraba and First Habib Modaraba) so as to determine their financial performance during the research period ( 1997- 2001) . These modarabas were in critical condition during the years under study. Data from their financial statements was used in the Z-score calculations to generate a value which if less than 2.675 indicates financial failure and if greater then 2.675 the firm is financially healthy.
