ASPECTS REGARDING THE SCORE METHOD FOR THE BANKRUPTCY RISK PREDICTION Cover Image

Aspecte privind medota scorului pentru previziunea riscului de faliment
ASPECTS REGARDING THE SCORE METHOD FOR THE BANKRUPTCY RISK PREDICTION

Author(s): Tatiana Danescu, Ancuta Raluca Sandru
Subject(s): Economy
Published by: Editura Universitaria Craiova
Keywords: rentability; bankruptcy risk; score methods

Summary/Abstract: The analysis of rentability and bankruptcy risk for an economic entity is the most important condition that assure the efficacy and the competitiveness of the enterprise. Knowing the level of the rentability ratios, each manager may predict and plan the firm’s activity in term of well development. The concern regarding the prediction of the bankruptcy risk was materialized, at the international level, beginning with the 60s from the previous century, in elaboration of a method known as "Score Method", which registered an important development because of the using of some statistical instruments for analyzing the financial situation, taking into consideration an ensemble of ratios. We want to underline, in this paper the importance of the rentability for each economical entity that is trying to survive in the great competition of the market. It can be appreciated that every economic agent, who wishes to remain a part of the competition, has adapt its policies and strategies in order to respond rapidly and efficiently to the new EU conditions. In the article below we also present some rules to respect in order to achieve a certain level of financial well health.

  • Issue Year: XXXVI/2008
  • Issue No: 6
  • Page Count: 8
  • Language: English