Discriminant Analysis of Companies Failure: Application to Moroccan SME

Pr. AIT Soudane Jalila, Essalhi Omar

Abstract: Qualified as an abnormal event which marks the company's life cycle, business failure is an episode where the company endures serious malfunctions that endanger the continuity of its operations and its sustainability. This article is interested in both the prediction and prevention of the difficulties that the company can cross and this, via the use of a financial analysis. Thus, it remains a topic that draws from several directions: legal, economic, financial, managerial and social.

Keywords: Failure, difficulties of the company, diagnosis and financial analysis, technical scoring, method of the ratios, suspension of the payments, risks bankruptcy, continuity of the exploitation