Assessment of Financial Distress Risk of Logistics Companies in Malaysia Using the Zmijewski Model ^†

The logistics industry plays a vital role in supporting economic growth by facilitating the efficient movement of goods and services and is a key component of Malaysia’s supply chain and trade activities. However, logistics companies are highly exposed to operational risks, economic fluctuations, and financial uncertainties, particularly during challenging periods such as the COVID-19 pandemic and its aftermath from 2020 to 2024. Without systematic financial evaluation, stakeholders such as investors, management, and policymakers may face difficulties in identifying financially healthy and distressed companies. The purpose of this study is to assess the financial performance of logistics companies listed on Bursa Malaysia from 2020 to 2024 using the Zmijewski model. A total of 28 logistics companies were evaluated in this study. The findings indicate that 24 companies remained financially healthy throughout the five-year period, representing 85.71% of the sampled firms. The results suggest that the majority of logistics companies maintained sound financial conditions despite economic challenges during the study period. On the contrary, the results of the study also revealed that a small number of companies are experiencing financial distress. The findings of this study are significant as they assist investors in making informed investment decisions, enable company management to identify potential signs of financial distress, and support policymakers in understanding the financial resilience of the logistics sector.