Using financial ratios to predict insolvency

Avi Rushinek; Sara Rushinek

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

Using financial ratios to predict insolvency

Avi Rushinek, Sara Rushinek

Research output: Contribution to journal › Article

3 Citations (Scopus)

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 - Jan 1 1987

Fingerprint

Analytical techniques

Financial ratios

Insolvency

Discriminant analysis

Credit risk

ASJC Scopus subject areas

Marketing

Cite this

Rushinek, A., & Rushinek, S. (1987). Using financial ratios to predict insolvency. Journal of Business Research, 15(1), 93-100. https://doi.org/10.1016/0148-2963(87)90021-X

Using financial ratios to predict insolvency. / Rushinek, Avi ; Rushinek, Sara.

In: Journal of Business Research, Vol. 15, No. 1, 01.01.1987, p. 93-100.

Research output: Contribution to journal › Article

Rushinek, A & Rushinek, S 1987, 'Using financial ratios to predict insolvency', Journal of Business Research, vol. 15, no. 1, pp. 93-100. https://doi.org/10.1016/0148-2963(87)90021-X

Rushinek A , Rushinek S. Using financial ratios to predict insolvency. Journal of Business Research. 1987 Jan 1;15(1):93-100. https://doi.org/10.1016/0148-2963(87)90021-X

Rushinek, Avi ; Rushinek, Sara. / Using financial ratios to predict insolvency. In: Journal of Business Research. 1987 ; Vol. 15, No. 1. pp. 93-100.

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Access to Document

10.1016/0148-2963(87)90021-X