Solution-Altman bankruptcy prediction model

Altman bankruptcy prediction model

Reference no: EM131332191

Altman's bankruptcy prediction model places a coefficient of 3.3 on the earnings before interest and taxes divided by total assets variable but a coefficient of only 1.0 on the sales to total assets variable. Does this mean that earning variable is 3.3 times as important in predicting bankruptcy as the assets turnover variable? Explain

Reference no: EM131332191

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Altman bankruptcy prediction model : Altman's bankruptcy prediction model places a coefficient of 3.3 on the earnings before interest and taxes divided by total assets variable but a coefficient of only 1.0 on the sales to total assets variable.

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Altman bankruptcy prediction model

Reference no: EM131332191

Reference no: EM131332191

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