Abstract
Abstract The failure of company is considered to be the most important subjects studied by many authors and researchers as for the passive impacts that might result from them on the national economy as well as on the whole society. Therefore, several researchers started to find a method by which they can predict failure before it takes place. As a result, enormous studies used the financial rates as tools for certain statistical models based on both single and multiple distinction analysis techniques for the possibility of failure prediction. These have emerged Altman Model, as well as other applicable models. The present research aims at finding a reliable technique for failure prediction through applying the Altman Model in a number of Iraqi contributing companies. The importance of the research has come from the significance of failure subject among many parties related to the company. The research problem lies in that the Iraqi contributing companies, investors and other parties are not aware of risks that lead the companies to failure in the future. The model was applied on a sample consisted of (17) Iraqi contributing company after obtaining the necessary information about them. Several findings were attained; the most important of which is Altman Model’s accuracy in predicting the failure of Iraqi companies. The study concluded that Altman Model for failure prediction should be adopted as a technique of financial analysis reliable to the evaluation of companies’ performance. Key words: Financial Analysis, Predict the Failure, Companies.
