logistic-regression-predicting-bankruptcy

This project uses Logistic Regression method to predic bankruptcy.

Features explain

1. Size

   a. Sales

2. Profit

   a. ROCE: Profit before tax to capital employed(%)

   b. FFTL: Funds flow(earnings before interest, tax & depreciation) to total liabilities

3. Gearing

   a. GEAR:(Current liabilities + long-term debt) to total assets

   b.CLTA: Current liabilities to total assets

4. Liquidity

   a. CACL: Current assets to current liabilities

   b. QACL: (Current assets - stock) to current liabilites

   c. WCTA: (Current assets - Current liabilities ) to total assets

5. LAG: number of days between account year end and the date the annual report and accounts were filed at company registry.

6. AGE: number of years the company has been operating since incorporation date.

7. CHAUD: coded 1 if changed auditor in previous three years, 0 otherwise

8. BIG6: coded 1 if company auditor is a Big6 auditor, 0 otherwise

Result Interpret

The target variable is FAIL, 1: Bankruptcy, 0: Survive