AI Insights: Unleashing Financial Distress Signals

Bankruptcy prediction is an important problem in finance since successful predictions would allow stakeholders to take early actions to limit their economic losses. In recent years, many studies have explored the application of machine learning models to bankruptcy prediction with financial ratios as predictors. Bankruptcies can lead to substantial financial losses, and the ability to anticipate such events is of paramount importance. This paper explored different models and techniques for bankruptcy prediction, indicating a diverse range of approaches to tackle the problem. Over the years, researchers have developed various models and techniques to predict bankruptcy based on financial and non-financial indicators. This paper represents a bankruptcy prediction model with a high accuracy rate.