Recent studies

  • R. A. I. Van Frederikslust


The objective of the recent studies mentioned in this chapter was to develop a ratio model to predict serious financial difficulties (i.e. failure) that can lead, for instance, to bankruptcy. For that purpose discriminant analysis is used in each case (see Section 2.1). In general the authors have initially introduced into their model a large number of ratios in order a) to determine if such difficulties can be predicted with ratios and b) to detect the ratios which are the best indicators of such problems. Two kinds of models are developed: models into which one variable is included to predict failure (univariate models) and models with more variables (multivariate models). Examples of both kinds of models will be dealt with and evaluated.


Discriminant Function Total Asset Debt Ratio Financial Ratio Profitability Ratio 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© H. E. Stenfert Kroese B.V., Leiden 1978

Authors and Affiliations

  • R. A. I. Van Frederikslust

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