The importance of bankruptcy prediction in the advancement of today’s businesses and economies

Abstract

[EN] The prediction of bankruptcy in companies is a problem that has concerned entrepreneurs, researchers and even governments for years, since detecting early signs that a company is going to enter bankruptcy involuntarily and being able to save it from that process, can help reduce the economic losses that bankruptcy entails, both in quantitative and qualitative terms. To try to avoid bankruptcy, it is very common to analyze the evolution of different financial ratios as it’s been done in this article.