A comprehensive formal ranking of the popularity of financial ratios in multivariate modeling of corporate collapse

This paper provides a fonnal ranking of the popularity of financial ratios in modeling corporate collapse. The analysis identified 48 financial ratios and ranked them according to their usefulness as portrayed in 53 studies that have utilized such ratios in modeling corporate collapse. The methodologies adopted in those studies are predominantly of the "multivariate" type. The 53 studies extend from 1966 to 2002, inclusive.