The extent to which the results of quantitative models for predicting financial distress are consistent with the financial position of Biopharm group for the period (2017-2021)

Abstract

This study aimed to find out the compatibility of the results of quantitative models to predict financial distress with the financial position of the Biopharm group during the period 2017-2021, in order to compare the financial position of the group with the results of the financial forecasting models, based on the descriptive approach and the analytical method. Ratios and financial indicators were used and analyzed to assess the financial position of the group during the study period on the one hand, and the application of the Taffler and Tisshow, Springate, Zmijewski, and Shirata model to predict financial distress in the Biopharm group on the other hand.

The study concluded that the Biopharm group enjoys financial solidity that enables it to face the risks to which it is exposed in the short term, and this was confirmed by both the Springate model (1978) and the Zmijewski model (1984), as well as the Shirata model (2002), as they were able to predict the real financial position of the Biopharm group during the study period, unlike the Taffler and Tisshow model (1977), whose results were the opposite, so accurate models must be built to predict financial distress based on a sample of Algerian institutions, in order to avoid Use models that have been created in a different environment.