<![CDATA[Tool used to predict the ability of the company at the rate of bankruptcy in order to know the position where the company is located, is in a position to bankruptcy, insolvency or position verge of bankruptcy a safe position. Financial ratios that measure the level of bankruptcy, five of these financial ratios have influence or at least contribute to the prediction model. As for the ratio: the ratio between working capital and total assets; comparison between retained earnings and total assets; the ratio between earnings before interest and tax and total assets; the ratio between shareholders' equity and total liabilities; as well as the comparison between sales and total assets. Each of these ratios has a constant value or parameter.]]>
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