Business Crisis: first seven warning ratios developed by the Association of Chartered Accountants

Article no. 13 of The New Italian Code of company crisis and insolvency entrusted advisors to set up every three years balance-sheet indicators and financial indicators able to promptly identify business crisis.

The Association of Chartered Accountants and Auditors, with the support of Cerved Group SpA, developed the first seven warning ratios, that, applied to a sample of 568.000 financial statements for the period 2010 – 2015, proved to be able to recognize in advance about 50% of situations in which insolvency actually occurs.

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