How do you predict the bankruptcy of a company?
Bankruptcy is an inability stated legally by an individual or organization to pay their creditors.
How do you predict the bankruptcy of a company?
Bankruptcy is an inability stated legally by an individual or organization to pay their creditors.
Print out the names of the companies onto little strips of paper. Get a monkey to do a lucky dip
I will make it short and simple,it can easily predict the bankruptcy of a company by analyzing their financial statements,,through their
financial statements someone would have the ability to measure the financial performance of the company
and know whether they are at profit or loss,,when they
are at loss and they still keep spending more than they earn then it means such companies will soon become
bankrupt and that is a sign that someone should not go near such company...
Predicting if a company is going to go bankrupt is a task that can be fulfiled by making basic analysis of the
company itself through the accounting details of the company,
for example,,if a company has alot of assets and liabilities but the liabilities are more than the assets which they have then that is a sign that the company is on a journey of becoming bankrupt,,,
another way to know if a company might soon become bankrupt is by knowing if the company is owing debts
which is more than a large perfentage of their yearly turnover ,increase debts negatively affects a company and can make such company to suffer bankruptcy....
so the bottomline is that a company that is spending more income than what they earn will definitely go
bankrupt someday because that action they are taking
is not sustainable...