11-77 What is the most important factor determining bankruptcy,according to the Altman Z?score model?

Question

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The Altman Z-score model uses several ratios to predict the likelihood of a company declaring bankruptcy, but the most important factor in the model is the earnings before interest and taxes to assets ratio (also known as the EBIT/TA ratio). This metric measures a company's profitability relative to its total assets and is considered a key indicator of financial stability. A low EBIT/TA ratio suggests that a company may have trouble servicing its debts and could potentially face bankruptcy.

11-77 What Is the Most Important Factor Determining Bankruptcy,according to the Altman