Analysis of Company Bankruptcy Factors

Today, when companies are exposed to many unpredictable micro- and macroeconomic risks and crises, no company can be confident in its stability and financial stability in the market. Any company is interested in prosperity and avoiding crisis situations, but it cannot influence the increase in the number of its competitors. In view of this, the sensitivity of firms to changes in market activity increases significantly. In modern realities, organizations face many problems that can lead to bankruptcy. Financial crises have repeatedly shown that even large companies, despite their leading position in the market of their activities, can be in a borderline state of bankruptcy. In order to avoid it, organizations should try to improve their activities and financial and economic indicators, as well as monitor the financial stability of their company in a timely manner and apply targeted measures to eliminate problems. The latter is achieved by conducting a bankruptcy risk assessment procedure. In view of all the above, the relevance of analyzing the factors of bankruptcy of companies is increasing. Based on the set goals and objectives, the study consists of the following parts: the theoretical part, which includes the study of the concept of bankruptcy, its types and causes; the study and analysis of applied modern models of the probability of bankruptcy of companies (including data collection, sample analysis, data run through existing modern bankruptcy models and interpretation of the results); the creation of recommendations on the formation of a management system and reduction of bankruptcy risks.