Bankruptcy of the Security Guard Service Companies in Bangkok, Thailand

Abstract

            The objective of this research is to study the use of financial ratio in analyzing the accuracy of prediction model of financial failure and to analyze the financial failure risk levels of the security guard company in Bangkok, Thailand, by using the Z-Score Model of Edward I. Altman.   Data obtained for the study is from the 2015-2017 financial statements of   6 security guard service companies. It is found from the study by using the financial ratio in analyzing the security company’s financial failure, that all the 6 companies have different   conditions of financial failure levels. That 50% of the companies are in a higher condition of   financial failure and the other 50% are in a lower condition of financial failure. It is also found from the study of the risk levels of having financial failure that, 66% has the risk in the   Save Zone level, while 17% is in the Gray Zone and another 17% is in the Distress Zone.