The utilisation of credit scoring method in the financial stability analysis to the beer industry entities

Abstract

The analysis of the financial stability of an entity is very important in order to measure the performances of the top management and their ability to control the assets, the owner’s equity and the profitability of that company. The purpose of this report is to introduce and expand the fundamental problems concerning the quantitative measurement of financial stability on the beer industry entities. In the present article, we intended to present the credit scoring method, emphasizing at the same time the limits of this method. Going deeper into the made calculations, we will analyse which indicators most affected the level of stability of the analysed companies and the consequences of the irrational use of company’s resources that may lead to bankruptcy.