New Study Identifies Key Ratios for Predicting SME Insolvency
Research published in the Global Business and Economics Review highlights seven ratios that may forecast SME insolvency up to three years in advance, providing valuable insights for lenders and investors.
A recent study published in the Global Business and Economics Review has identified seven financial ratios that could help predict the insolvency of small and medium-sized enterprises (SMEs) as much as three years before it occurs.
This research aims to equip lenders, investors, and business owners with tools to better assess the financial health of SMEs, potentially mitigating risks associated with lending and investment decisions.
The findings, released on June 11, 2026, could have significant implications for the financial sector, enhancing the ability to identify at-risk businesses and support them before they reach a critical point.