The discriminatory analysis has become widely used to determine and forecast the financial state of enterprises. Over the recent 45 years, hundreds of studies forming models for forecasting business failures have been published. Most of these studies have focused on one specific area. In addition to the discriminatory analysis, other methods were used, including the logit-analysis, the probit analysis, the regression analysis, and the neural network. The Altman model (1868) is the oldest and most common model that uses multivariate discriminatory analysis to forecast the corporate bankruptcy. The aims at developing the discriminant functions to reliably identify the quality and efficiency of cash flow management at an enterprise.
