Insolvency analysis in Colombian industry: an application of the Springate model
DOI:
https://doi.org/10.47847/faccea.v16n2a4Keywords:
Springate, Risk, Bankruptcy, SMEs, IndustrialAbstract
The Colombian industrial sector faces challenges that threaten its financial stability, making it necessary to explore methodologies for the early detection of insolvency. This study applies the Springate model to assess the risk of bankruptcy among Colombian industrial SMEs between 2021 and 2025. The model was selected because of its limited application in the local context and its potential adaptability to the national market. Using a quantitative approach, 2,447 companies reporting to the Superintendence of Companies were analyzed through quartile analysis, interquartile range analysis, and hypothesis testing. The results indicate an improvement in short-term payment capacity, although liquidity gaps persist; 69.6% of the companies were classified in the safe zone, while 30.4% showed a latent risk of bankruptcy. The model proved to be a valuable tool for anticipating financial distress, providing empirical evidence on the application of the Springate model to Colombian industrial companies and supporting corporate financial risk management.
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