Using financial ratios to predict insolvency

Avi Rushinek; Sara F. Rushinek

doi:10.1016/0148-2963(87)90021-X

Using financial ratios to predict insolvency

Avi Rushinek, Sara F. Rushinek

Research output: Contribution to journal › Article › peer-review

3 Scopus citations

Abstract

The purpose of this study is to explore the feasibility of using financial ratios as an analytical technique to predict financial insolvency. Using discriminant analysis, a credit-risk score was calculated to determine if a lender should accept or reject a prospective borrower. This study reveals that 80% of the cases were correctly predicted by this model.

Original language	English (US)
Pages (from-to)	93-100
Number of pages	8
Journal	Journal of Business Research
Volume	15
Issue number	1
DOIs	https://doi.org/10.1016/0148-2963(87)90021-X
State	Published - Feb 1987

ASJC Scopus subject areas

Marketing

Access to Document

10.1016/0148-2963(87)90021-X

Fingerprint Dive into the research topics of 'Using financial ratios to predict insolvency'. Together they form a unique fingerprint.

Cite this

@article{dc5e2fa480404450a793d18a08a6be89,

title = "Using financial ratios to predict insolvency",

abstract = "The purpose of this study is to explore the feasibility of using financial ratios as an analytical technique to predict financial insolvency. Using discriminant analysis, a credit-risk score was calculated to determine if a lender should accept or reject a prospective borrower. This study reveals that 80% of the cases were correctly predicted by this model.",

author = "Avi Rushinek and Rushinek, {Sara F.}",

year = "1987",

month = feb,

doi = "10.1016/0148-2963(87)90021-X",

language = "English (US)",

volume = "15",

pages = "93--100",

journal = "Journal of Business Research",

issn = "0148-2963",

publisher = "Elsevier Inc.",

number = "1",

}

TY - JOUR

T1 - Using financial ratios to predict insolvency

AU - Rushinek, Avi

AU - Rushinek, Sara F.

PY - 1987/2

Y1 - 1987/2

N2 - The purpose of this study is to explore the feasibility of using financial ratios as an analytical technique to predict financial insolvency. Using discriminant analysis, a credit-risk score was calculated to determine if a lender should accept or reject a prospective borrower. This study reveals that 80% of the cases were correctly predicted by this model.

AB - The purpose of this study is to explore the feasibility of using financial ratios as an analytical technique to predict financial insolvency. Using discriminant analysis, a credit-risk score was calculated to determine if a lender should accept or reject a prospective borrower. This study reveals that 80% of the cases were correctly predicted by this model.

UR - http://www.scopus.com/inward/record.url?scp=45949125596&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=45949125596&partnerID=8YFLogxK

U2 - 10.1016/0148-2963(87)90021-X

DO - 10.1016/0148-2963(87)90021-X

M3 - Article

AN - SCOPUS:45949125596

VL - 15

SP - 93

EP - 100

JO - Journal of Business Research

JF - Journal of Business Research

SN - 0148-2963

IS - 1

ER -

Using financial ratios to predict insolvency

Abstract

ASJC Scopus subject areas

Access to Document

Other files and links

Cite this