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FitzPatrick 1932
FitzPatrick 1932 is an early paper in the field of bankruptcy prediction. In a series of three articles in the monthly ''The Certified Public Accountant'' in 1932, Paul J. FitzPatrick presented data for 20 matched pairs of firms and discussed accounting ratios as indicators of bankruptcy. It is historically significant as an early attempt in this field, and it is notable also for its publishing a data set, now in the public domain. Beaver (1968), an important paper in accounting research which employs statistical analysis to a similar matched sample, cites the paper. The dataset includes 13 accounting ratios calculated for 40 firms for each of three years. However some fields are missing for some firm-year observations. Sample selection Example data Analysis and discussion References FitzPatrick, Paul J., Ph.D. 1932. "A Comparison of the Ratios of Successful Industrial Enterprises With Those of Failed Companies". ''The Certified Public Accountant'' Beaver 1968. ''Jou ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bankruptcy Prediction
Bankruptcy prediction is the art of predicting bankruptcy and various measures of financial distress of public firms. It is a vast area of finance and accounting research. The importance of the area is due in part to the relevance for creditors and investors in evaluating the likelihood that a firm may go bankrupt. The quantity of research is also a function of the availability of data: for public firms which went bankrupt or did not, numerous accounting ratios that might indicate danger can be calculated, and numerous other potential explanatory variables are also available. Consequently, the area is well-suited for testing of increasingly sophisticated, data-intensive forecasting approaches. History The history of bankruptcy prediction includes application of numerous statistical tools which gradually became available, and involves deepening appreciation of various pitfalls in early analyses. Research is still published that suffers pitfalls that have been understood for many ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Current Ratio
The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations. It compares a firm's current assets to its current liabilities, and is expressed as follows:- : The current ratio is an indication of a firm's liquidity. Acceptable current ratios vary from industry to industry. In many cases, a creditor would consider a high current ratio to be better than a low current ratio, because a high current ratio indicates that the company is more likely to pay the creditor back. Large current ratios are not always a good sign for investors. If the company's current ratio is too high it may indicate that the company is not efficiently using its current assets or its short-term financing facilities. If current liabilities exceed current assets the current ratio will be less than 1. A current ratio of less than 1 indicates that the company may have problems meeting its short-term obligations. Some types of businesses can operate ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Quick Ratio
In finance, the quick ratio, also known as the acid-test ratio is a type of liquidity ratio, which measures the ability of a company to use its ''near cash'' or quick assets to extinguish or retire its current liabilities immediately. It is defined as the ratio between quickly available or liquid assets and current liabilities. Quick assets are current assets that can presumably be quickly converted to cash at close to their book values. A normal liquid ratio is considered to be 1:1. A company with a quick ratio of less than 1 cannot currently fully pay back its current liabilities. The quick ratio is similar to the current ratio, but provides a more conservative assessment of the liquidity position of firms as it excludes inventory, which it does not consider as sufficiently liquid. Formula :\text = \frac or specifically: :\text = \frac It can also be expressed as: Ratio :\text = \frac Ratios are tests of viability for business entities but do not give a complete picture ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Journal Of Accounting Research
The ''Journal of Accounting Research'' is a leading peer review, peer-reviewed academic journal associated with the University of Chicago. It was established in 1963 and is published by Wiley-Blackwell on behalf of the Accounting Research Center (Formerly the Institute of Professional Accounting) at the University of Chicago Booth School of Business. Its current senior editors are Philip G. Berger, Luzi Hail, Christian Leuz, Haresh Sapra, Douglas J. Skinner, Rodrigo Verdi, and Regina Wittenberg Moerman. It is listed as one of the 50 journals used by the ''Financial Times'' to compile its business-school research ranks and ''Bloomberg Businessweeks Top 20 Journals. According to the ''Journal Citation Reports'', it has a 2018 impact factor of 4.891, ranking it third out of 103 journals in the category "Business, Finance". Former Editors * Sidney Davidson * David O. Green *Nicholas Dopuch *Katherine Schipper * Richard Leftwich * Abbie J. Smith *Ray J. Ball, Ray Ball * Merle Erick ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |