Prediction of bankruptcy firms using statistical model and machine learning model -A comparative study

Indian statistics revealed that approximately more than ten thousand actively working firms in different industry cease their business operations in a very short period of time due to various reasons. The study analyzed a group bankruptcy and non-bankruptcy firms and applied statistical and machine learning tools considering 64 important ratios and compared the results predicted by the statistical model and machine learning model and found that advanced machine learning motels could identify the ratios better that the statistical model.