Measuring the potential of bankruptcy in your suppliers
Every supplier is given a financial health score. A supplier's financial health may be one of the most important risk factors when evaluating your suppliers. Z2Data takes multiple factors into account when calculating the overall financial health score. One of these factors is a supplier's bankruptcy score. Z2Data tracks a company's financial trends and provides insight into what the probability of bankruptcy is looking like and the trajectory that the company is facing in the future. The bankruptcy score ONLY assesses the risk of bankruptcy and nothing else. For example, a company could be stagnant but have a strong bankruptcy score. Z2Data takes into account the below factors to calculate the bankruptcy score:
- Liquidity - Ability to cover short term obligations
- Leverage - Ability to cover long term obligations
- Profitability - Ability to generate profits
- Growth Year-over-Year
- Market Performance - Evaluates Stock Performance and Market Value
When looking to understand bankruptcy you are provided with in-depth analytics so that you do not have to analyze the data yourself, Z2Data algorithms provide accurate predictions of the risk associated with a company going bankrupt in under 2 years from today.
To understand the risk of bankruptcy in your supplier base, sign up for a free trial with Z2Data's Supplier Insights.