Evaluating the Bankruptcy prediction models

In IPC is a situation which trader or company is not able pay its dept. and can't fulfill the Business Commitment. Gitman believes that, bankruptcy happens in situations when the dept. of a company is more than the assets value. So one of the critical factors for Investors who decide to invest is predicting the bankruptcy. Prediction of bankruptcy can be done using many methods that among them ratio analysis method and the analysis of market risk method are the most validated methods. In analysis of market risk method, the probability of bankruptcy is estimated through the changes in market risk. In ratio analysis method the probability of bankruptcy is estimated through a group of financial report that are combined by scholars. In recent years Academic research communities have been trying to predict bankruptcy more exact that these different models for predicting bankruptcy arr including: (William, Altman, D.kin, spin gate ...)

bankruptcy, bankruptcy prediction, financial ratio, predicting models