| Abstract [eng] |
Corporate activity has always been associated with risk. One company wins, the other necessarily loses in the competition. Unsuccessful in most cases are bankrupt or are forced to change the production profile. The concept of bankruptcy as defined in the commercial dictionary as a situation where the person is unable to pay his/its debts. While there are a number of diagnostic models for bankruptcy, and many different studies are carried out in assessment of companies’ insolvency, need in relevant and reliable bankruptcy prediction models is witnessed by large number of articles and discussions in the financial and management science literature – it is still difficult to choose the proper and accurate bankruptcy diagnostic model for early detection of insolvency (i.e. in advance), in order to eliminate the negative effects and avoid bankruptcy. Paper is aimed: to check reliability if chooses bankruptcy diagnostic models for predicting bankruptcy of the Lithuanian companies. The work consists of theoretical and practical components. The theoretical part analyses the bankruptcy of enterprises, based on analysis of relative financial indicators used to predict bankruptcy, as well as solvency, profitability, and cash flows. |
