Abstract:

Theories of organisational failures predict many factors contributing to the collapse of companies. The key factors often feature an enterprise’s age and size. However, the correlation between a company’s features and specific causes of failure has not yet been conclusively studied and compared. The elaboration describes a multi-ratio financial analysis of enterprises, the aim of which is to predict enterprise bankruptcy. The analysis features the application of a multi-dimensional discriminant analysis models and their effectiveness. Financial reports of stock exchange listed companies were taken into account in the analysis. The analyses applies various discriminant models, thereby attempting to compare discriminant models in terms of their effectiveness.