Financial diagnosis of distressed companies

Against the background of the economic crisis and of a fierce competition, the external and internal environment becomes more and more hostile and as such, many commercial societies, can record financial disturbances or even bankruptcy. On the basis of symptoms, the level of some economic-financial indicators, following a proper diagnosis, one can apply a therapy that can improve the situation or fully restore the company. The study conducted by the author on a guided sample of trading companies from Romania, aimed at developing a model of financial diagnosis, which can reflect quickly, based on the level of a score, the economic financial situation, the performance, the present and future risks, as a result of the policies and decisions taken. (C) 2012 Published by Elsevier Ltd. Selection and/or peer review under responsibility of Emerging Markets Queries in Finance and Business local organization