Limitations of Modeling the Relationship between Financial Ratios of Mechanical Engineering Companies

On the example of data on companies of the mechanical engineering industry, an analysis of the relationship of financial ratios and their impact on the financial risk index (FRI) for self-assessment of the risk of business insolvency is performed using a linear regression model in Python. In the course of construction and quality control of the model, limitations of its practical application are revealed. Conclusions and recommendations are formulated based on analysis results.