Bankruptcy Risk Information on Listed US Companies

Measure of Bankruptcy Risk

BRAINKRUPTCY empirically estimates the measure of bankruptcy risk for listed US companies. The measure of bankruptcy risk indicates the level of a company’s financial distress.
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Cut-off-rate

BRAINKRUPTCY applies the cut-off-rate to distinguish between companies that are financially healthy and companies that exhibit severe financial distress.
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Change in the Measure of Bankruptcy Risk

An enhanced analysis of a company’s financial distress takes into account the current measure of bankruptcy risk and how that measure of bankruptcy risk has changed.
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Area Under Curve (AUC)

The BRAINKRUPTCY model of bankruptcy risk provides a very accurate bankruptcy prediction, because the historic Area Under Curve (AUC) value since 2006 is in the range 0.86 to 0.95.
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Alpha Error and Beta Error

The historic median alpha error since 2006 is about 17 percent, which means that about 83 percent of bankrupt companies are correctly identified at an early stage.
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