Friday, July 31, 2026
Science

Seven ratios predict SME insolvency up to three years early

A study in the Global Business and Economics Review suggests that the failure of small and medium-sized enterprises (SMEs) can be predicted as much as three years before insolvency. The work could offer lenders, investors and business owners an early warning of financial problems years in advance.

Seven ratios predict SME insolvency up to three years early
Image: Phys.org
A study in the Global Business and Economics Review suggests that the failure of small and medium-sized enterprises (SMEs) can be predicted as much as three years before insolvency. The work could offer lenders, investors and business owners an early warning of financial problems years in advance.

Originally published at Phys.org

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