Resumen
AbstractIn this study failure-prognosis models have been compiled for periods of high and low economical activity. Profitability, cash flow and activity ratio's have given better classification results during high economical activity than during low economical activity. Gearing and liquidity ratio's have given better classification results during low economical activity than during high economical activity. The failure-prognosis models were interchanged and it was found that models compiled to predict business failure during high economical activity did not fare well when applied during low economical activity and vice versa.