THE FORECAST OF BANKRUPTCY RISK USING ALTMAN MODEL

Abstract

The manifestation of financial crisis leads to the appearance or the increase of the risk of bankruptcy. Therefore, the analysis of bankruptcy risk interests a number of users (customers, organizations, financial institutions) and itself the company, in preventing the financial difficulties encountered from the early stages of the degradation process. This article explores the top 10 companies on the BSE during 2010-2011 period by using the Altman model for the determination of those firms who may experience in a close period a higher risk of bankruptcy.

Keywords

• risk of bankruptcy
• Altman model
• financial crisis
• BSE