PREDICTIVE ANALYSIS SOFTWARE FOR MODELING THE ALTMAN Z-SCORE FINANCIAL DISTRESS STATUS OF COMPANIES

• Main Authors: ILIE RĂSCOLEAN, REMUS DOBRA, GABRIELA CORINA SLUSARIUC
• Format: Article
• Language: English
• Published: University of Petrosani 2012-10-01
• Series: Annals of the University of Petrosani: Economics
• Subjects: scoring method; bankruptcy risk; predictive flowchart; LabView software
• Online Access: http://www.upet.ro/annals/economics/pdf/2012/part3/Rascolean-Dobra-Slusariuc.pdf

Literature shows some bankruptcy methods for determining the financial distress status of companies and based on this information we chosen Altman statistical model because it has been used a lot in the past and like that it has become a benchmark for other methods. Based on this financial analysis flowchart, programming software was developed that allows the calculation and determination of the bankruptcy probability for a certain rate of failure Z-score, corresponding to a given interval that is equal to the ratio of the number of bankrupt companies and the total number of companies (bankrupt and healthy) interval.