iarjbmIARJBMIARJBM2708-5147https://doi.org/10.47310/iarjbm.2021.v02i02.023A Comparative Study on the Financial Soundness of leading Telecommunication Companies in Sultanate of Oman using Altman’s Z –Score ModelDianaFernandezLamyaAbdullah AlAamriSalimSulaiyam Al HarrasiRadhiyaSalim AL-RawahiLecturer in Accounting, Business Studies Department, University of Technology and Applied Sciences, NizwaBachelor in Accounting, University of Technology and Applied Sciences, NizwaThe study is a fundamental analysis of the leading telecom companies in the Sultanate of Oman. Even though Oman telecom market is believed to have room for and growth for the two major telecom companies i.e. Omantel and Ooredoo the companies reported declining profits recently due to higher royalties and tax rates. The study was undertaken to analyze the financial strength of these two leading telecom companies by using the Altman’s Z score model. Annual reports of two telecom companies were collected for a period of six years form 2015 till 2020. The results show that the independent variables viz; working capital, retained earnings, EBIT and total sales do not have a significant impact on the dependent variable total assets for both the companies, meanwhile the market value of equity has strong negative correlation and has a significant impact on the total liabilities of Ooredoo and Omantel. The financial health of Ooredoo is better than Omantel Company. The Z score is an effective tool to demonstrate credit worthiness to bankers and soundness of business model to investors. Even though Ooredoo has better financial strength than Omantel, both the companies must go ahead with innovative steps to attract customers, improve sale and cash flow and thereby strengthen its financial soundness.