Analysis of the Economic Sustainability of the Supply Chain Sector by Applying the Altman Z-Score Predictor

Abstract

This paper fills the gap in the financial perspective of supply chain performance measurement, related to the lack of a bankruptcy probability indicator, and proposes a predictor which is the eighth-model of the Altman Z-Score Logistic Regression. Furthermore, a bankruptcy probability ranking is established for the companies’ supply chains, according to the industry to which they belong. Moreover, the values are set to establish three categories of companies according to predictor. The probability of bankruptcy is analysed and studied for the supply chain of different industries. The building industry is revealed to have the highest probability of bankruptcy.