Risk Value
A weighted value of the probability of bankruptcy plus the probability of going 90 or more days beyond term on accounts payable. The value is determined through the use of two logistic models: a bankruptcy model and a days beyond term model.
A value of 0 represents a low probability of bankruptcy or the probability of going 90 days or more beyond term on accounts payable. As the value approaches 1, the probability of bankruptcy and of going 90 days or more beyond term on accounts payable increases.
The primary inputs for each model are the industry, employment change, and geographic area. The results are based on a known set of firms that have debt and bankruptcy experiences.
| Yes | No |