When the Balance Sheet Becomes a threat, but there is a Way Out: Analyzing a Company's Finances Using Altman, O'keeffe, and Lee Models to Predict Bankruptcy and Prevent a Crisis

Abstract

SA Furnizarea Energiei Electrice NORD (FEENord) is a leading supplier of electricity in the northern regions of the Republic of Moldova. In recent years, the market has faced an energy crisis, which has had an impact on the company's financial results. Three popular bankruptcy forecasting methods were used to analyze the company's financial condition: the Altman model (Z-score), the Springate model (O'Keeffe) and the Taffler model (Lee). These methods allowed us to assess the financial stability of the company based on key indicators. According to the results of the analysis, it was found that the company is in the "green zone" for all three models, which indicates a low risk of bankruptcy. An analysis of the data for 2021-2023 showed a stable financial situation and no threat of bankruptcy. The article provides detailed calculations and recommendations for further optimization of the company's financial activities, such as improving liquidity, managing debt obligations and increasing operating profit. CZU: 005.52:658.155; JEL: G33, G32, L94, C58