To support our decision making, to address new clients and to verify the value of receivables, we use selected mathematical, statistical and accounting methods from the Benford Analysis up to AI.
We analyse the overall economic condition of the company, whether it is able to finance its liabilities from its own sources, trends in economic data of financial statements, level of equity, how is the company’s approach to reporting for the collection of documents in the Commercial Register and the like.
Out of the total number of approximately half a million stock trading companies in the Czech Republic, there is a whole number of business entities in perfect economic condition, however, on the other side, there is a number of “zombie“ firms here that means companies unable to cover even their interest costs from profit before taxation and also a big number of absolutely dead firms (the estimate is up to around 100 thousand that means approx. 20 % of the total number). The majority of your debtors and business partners is somewhere between these extremes.
Prediction of your business partner’s further development and thus also your receivable or your supplier, may be essential for your business not only from the point of view of liquidity loss but also from the point of view of the total operational ability of your company.
- Benford Analysis, mathematical models, artificial intelligence
- Economic trends, analyses and reporting
- Zombie and dead firms