business failure prediction

Business failure prediction involves analyzing various factors to assess the likelihood that a company will fail. This can include financial indicators like debt levels, cash flow, and profit margins, as well as non-financial aspects like management quality, industry conditions, and market competition. By using historical data and statistical models, experts aim to identify warning signs early, allowing businesses to make informed decisions to improve stability. This predictive approach helps investors, stakeholders, and entrepreneurs understand risks and take proactive measures to avoid potential failure.