RISK ANALYSIS IN MILK PROCESSING
Keywords:
risk bankruptcy, Canon and Holder’s Model, meat processingAbstract
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 Meat
processing Plant (Rador Commercial Company ) .The study has put in evidence the
financial situation of the company,the level of the main financial ratios
fundamenting the calculation of Z score function value in the three years The low
values of Z score function recorded every year reflects that the company is still
facing backruptcy. However , the worst situation was recorded in the years 2005 and
2006, when baknruptcy risk was ranging between 70 – 80 % . In the year 2007, the
risk bankruptcy was lower, ranging between 50-70 % , as Z function recorded a
value lower than 4 .For Meat processing companies such an analysis is compulsory
at present as long as business environment is very risky in our country.
References
Pirvutoiu I., Popescu Agatha , Grigoras M. ( 2007) Risk Management in
the Agro-Food sector in the context of Romania’s adhesion to the E.U., National
Symposium with International Participation “ The impact of Romania’’s
integration into the E.U. on agriculture development, Faculty of Management ,
UASVM Bucharest, April 27, 2007, Scientific Papers, 6 p. ( p. 329- 332.)
Popescu Agatha ( 2007 – Financial Analysis, Dominor Publishing
House, Bucharest, p.141-142, p.224-228.
