Bankruptcy, Working Capital and Funds Flow Components

Abstract

The objectives of this study are to offer cash based funds flow components as an alternative to financial ratios for classifying the financial performance of companies; to test empirically the ability of funds flow components to distinguish between failed and nonfailed companies with special emphasis on working capital components; to analyse the empirical results and make recommendations for future study.

Citation

Gentry, J.A., Newbold, P. and Whitford, D.T. (1984), "Bankruptcy, Working Capital and Funds Flow Components", Managerial Finance, Vol. 10 No. 3, pp. 26-39. https://doi.org/10.1108/eb027320