RISK ANALYSIS IN MEAT PRODUCING
Keywords:
risk bankruptcy, Canon and Holder’s Model, milk producingAbstract
This paper aimed to evaluate Risk bankruptcy using “Score Method” based on
Canon and Holder’s Model. The data were collected from the Balance Sheet and
Profit and Loss Account for the period 2005-2007, recorded by a Dairy Farm . The
study has put in evidence the bad financial situation of the company a reason to face
a high risk bankruptcy in the all the three years. The high values of Z score function
recorded every year reflects that there is no room for a financial recover, as long as
the risk coefficient is higher than 80 %. Such a risk analysis would have to be made
a few years ago in order to be useful for identifying in time the factors with a
negative influence on the financial statement and to take the corresponding
measures for avoiding such a bankruptcy. For Dairy commercial farms, such an
analysis is compulsory at present taking into account the risky business
environment.
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